THE Rivers State governor, Chibuike Amaechi, has presented a N432.2 billion to the state's House of Assembly. This year's approved budget was N377 billion

Amaechi, while presenting the appropriation bill to the legislative house presided over by the Speaker, Tonye Harry, said the budget proposals would be funded from 2009 projected revenue of N328 billion and unspent 2008 appropriation of N104.2 billion.

He explained that the recurrent expenditure projection for the 2009 appropriation bill is N90.6 billion, which represents 21 per cent of the total estimates, while capital expenditure is put at N341.6 billion or 79 per cent of the total estimate for 2009.

The governor stated that the reason for higher recurrent expenditure this year as compared to last year was largely attributable to the state of emergency which was declared in the education sector. This, according to him, necessitated the takeover of the payment of salaries of primary school teachers by the state government.

The capital expenditure proposals are allocated each sector as follows: economic sector: N124.5 billion, social sector: N34.5 billion and environmental: N25.7 billion

The governor observed that the 2009 budget poses unique challenges and also offers great opportunities to the state. He said the state's revenue profile is enhanced by the fact that the government is confident that its decision to partner with the private sector to better manage internally generated revenue would ensure that the state expectations are realized next year.

"To ensure increased internally generated revenue, we have entered into an agreement with a revenue generation consultant to manage our internally generated revenue to the effect that any shortfall between our estimated internally generated revenue profile and actual receipt within the year will be guaranteed and paid to us," Amaechi said.

In keeping with the government's determination to chart a new course in fiscal prudence, rule of law and due process, the governor said the administration is determined that the 2009 appropriation bill, when passed in to law, shall constitute the one and only foundation on which the expenditures and disbursements of the state's fiscal resources for the year would be based.

He explained that government has already put in place a firm foundation for fiscal prudence and adherence to accepted international budgetary practices by the establishment of the Public Procurement Bureau which was achieved with the cooperation and support the house through the passage of the Rivers State Public Procurement Law.

He said all the structures envisaged by the public procurement law, including the establishment of the State Tenders Board have been put in place, and with the help of international consultants, concluded a Public Expenditure and Financial Assessment (PEFA) audit of the operations of the state, which revealed clear and disturbing weaknesses in its financial systems and operations over the years.

According to him, "it was indeed this (PEFA) assessment that enabled us to realise that over the immediate past 20 years the Rivers State government has invested less than 3.5 percent of its resources in the education of our children."

The governor assured the lawmakers that his administration would continue to pursue its avowed goals of transparency, clear, visible and responsible public accounting procedures with the submission to house in the near future of a fiscal responsibility bill which would help to further strengthen transparency and openness in the state accounting practices and procedures