Delta State Governor, Ifeanyi Okowa, Tuesday, presented a proposed budget of N378, 184,397,889 for 2021 fiscal year to the State House of Assembly.
The budget is made up of N170, 370,000 for recurrent expenditures and N207.5 billion for capital expenditures.
Okowa in the more than 50 minutes presentation of the Appreciation Bill at the Hallowed Chamber of the House, said the budget christened “Budget of Recovery” would be funded from four sources.
The sources according to the Governor, include Internally Generated Revenue, N65.6 billion, Statutory Allocation including Mineral Revenue Derivation and Excess Crude, N219.9 billion, Value added tax, N17.5 billion and Other Capital Receipts, N17.3 billion.
Explaining that the 2021 budget estimates was N96.1 billion increase over the revised budget of 2020, Okowa said the increase was necessitated by the realities of the times with respect to gradual improvement in revenue inflow from the federal allocation as the impact of Covid 19 pandemic was easing.
The Governor maintained that the recurrent estimate of N171.3 billion represents 45.24 per cent of the total budget and comprised of personal cost, N85 billion, overhead cost, N60 billion, and consolidated revenue fund charges, N26 billion.
Okowa noted that the personnel cost was higher than the 2020 revised budget figure of N82 billion by N2.4 billion, while the overhead cost was N15.8 billion higher than the previous estimate of N59.9 billion.
He stated that the marginal increase of the personnel budget was to accommodate the reinstatement of the workers new minimum wage which was shelved for a short period in the heat of the sharp revenue drop during Covid 19 pandemic.
According to the Governor, the total proposed recurrent expenditure budget was higher than the N152.4 one of the revised 2020 by N18.8 billion.
Okowa explained that the increase was as a result of the return to economic and social activities which was expected to culminate in increased funding for social investment programs of government which have huge recurrent components.
On the proposed capital estimate of N207.2 billion, the Governor said the amount represents 54.8 percent of the total sum of N378 billion, adding that the estimate was higher than the N120.8 billion budgeted in the revised 2020 budget by N77.3 billion.
Okowa stated that the increase stemmed from the gradual improvement in some revenue streams, especially the improvement in receipts from FAAC, stressing that there was a corresponding increase in funding of critical capital projects that can create wealth and improve the quality of lives of the people.
Earlier, the Speaker, Chief Sheriff Oborevwori while welcoming the governor to the Hallowed chamber, pledged the commitment of the state Legislature to collaborating with the Executive to develop a smart, sustainable and knowledge-based state and an economy that would be the envy of all.
Oborevwori emphasized that with the feat achieved in the five years administration of Okowa’s led government, the responsiveness and readiness of the House to continue to support the government through passage of people-oriented and development driven legislation was not in doubt.
The Deputy Speaker, Chief Ochor Christopher Ochor, in a motion of appreciation, assured of the House readiness for early passage of the Appropriation Bill.
Ochor stated that the budget which focuses on the recovery of the state economy after the novel coronavirus pandemic was considered appropriate, stressing the resolve of the House to protect the overall interest of the people and return the state to stronger economy amongst states in Nigeria.
He promised that the state legislature would work with the various ministries and government Departments, maintaining that the positive effect of timely budget implementations in the development of any state, could not be overstressed.
Meanwhile, the 2021 Appropriation bill has passed first reading on the floor of the State House of Assembly.
The motion for the first reading was moved by the House Majority Leader, Mr Tim Owhefere after it was presented to members by the state Governor, Dr Ifeanyi Okowa.
Second reading has been slated for tomorrow Wednesday, 28th October 2020.
