Delta State Governor Proposes N265.6bn Budget Estimates For 2016 Fiscal Year

The Governor of Delta State, Ifeanyi Okowa, on Tuesday presented a budget estimate of N265,668,156,174 billion for the 2016 fiscal year to the Delta State House of Assembly for consideration and approval.

BusinessDay reports that the budget estimates christened “Budget of Renewed Hope and Inclusive Development” is made up of N153,156,852,956 billion representing 57.65 percent for recurrent expenditure and N112,511,303,218 billion representing 42.35 percent for capital expenditure.

Okowa, who presented the budget proposal to the lawmakers, said the 2016 budget estimate was higher than the approved budget of N252,943,494,429 billion for 2015, with N12,724 billion representing 5.03 percent.

He said the state government expected to fund the budget from the internally generated revenue (IGR), statutory allocation from the federation account, including mineral revenue derivation, valued added tax, and other capital receipts.

The state government expected to generate the sum of N75,378,226,742 representing 28.37 percent from IGR, N137,948,341,497 billion representing 51.93 percent from statutory allocation including mineral revenue derivation, N10,218,715,326 billion representing 3.85 percent from the valued added tax and N42,122,872,609 billion representing 15.86 percent from other capital receipts.

The governor disclosed that of the sum of N153,156,852,956 billion earmarked for recurrent expenditure, a total of N68,453,584,572 billion representing 44.70 percent was for personnel costs, N30,166,334,179 billion representing 19.70 percent for overhead costs and N54,536,934,205 billion representing 35.61 percent for consolidated revenue fund charges.

The sectoral breakdown of the budget estimate indicated that Delta State Oil Mineral Producing Commission (DESOPADEC) has the lion share of N28 billion followed by Environment with N26,987,445,368 billion, Economic N23,854,664,599 billion, Social N17,300,911,898 billion, General Administration N15,568,281,353 billion, Transport N15,421 billion, Education N10,1billion, among others.

Okowa however noted that the severe financial challenges that heralded his assumption of office on May 29, occasioned by drastic reduction of accruals from the federation account, huge debt profile and deficit threatened the government capacity to deliver on its S.M.A.R.T agenda as well as the government’s inability to meet its statutory obligations to workers and contractors.

He however assured that the state during the 2016 fiscal year hoped to attract Foreign Direct Investments (FDI) that will in turn increase its revenue base.

While noting that the budget was tight, he observed that it was consistent with his administration vision for maintaining strict fiscal discipline.

He posited that the health of the state government public finances was crucial to good governance, inspiring hope and confidence, attracting investors and ensuring the sustainable development of the state economy.

He however assured that his administration would continue to observe the basic principles of prudent management of public finances, strict adherence to due process and keep expenditure within revenue limits to ensure that every expenditure would be paid for.