Governor Ifeanyi Okowa of Delta State has presented a budget proposal of ₦298.078 billion for the 2018 fiscal year to the state House of Assembly for consideration and passage.
Christened ‘Budget of Hope and Consolidation’, the proposal showed an increase of ₦3.62 billion or 1.21 per cent over the 2017 approved budget of ₦294.4 billion.
The 2017 budget has so far recorded 57.7 per cent performance between January and September, with the governor expressing optimism that the performance will further shoot up in the last quarter of the year.
Okowa said the 2018 budget estimates consist of recurrent expenditure of N147.5billion, representing 49.48 per cent and capital expenditure of N150.6 billion, representing 50.52 per cent.
To finance the budget, Okowa said a total of N71.36 billion (23.94 per cent) is expected to be sourced as Internally Generated Revenue (IGR), while ₦178.06 billion (59.73 per cent) is expected to come in as statutory allocation, including mineral revenue derivation.
Other sources of funding, according to him, include Value Added Tax (VAT) – ₦10.77 billion, representing 3.61 per cent, and other capital receipts – ₦37.893 billion, representing 12.72 per cent.
Giving a breakdown of the proposed recurrent expenditure, Okowa said ₦64.35 billion (43.36 per cent) will be spent as personnel costs, while overhead costs will gulp ₦46.84billion (31.56 per cent), just as he proposed a total of ₦37. 23 billion (25.08 per cent) as consolidated revenue fund charges.
On the capital expenditure, the breakdown include economic, ₦37,95billion (25.20 per cent); social, ₦28.7billion(19.05 per cent); environmental, ₦35.3 billion (23.41 per cent); general administration, ₦17.7billion (11.7 per cent); Delta State Oil Producing Areas Development Commission (DESOPADEC), ₦28 billion(18.59%); and contingency fund, ₦3 billion(2. per cent).
The governor reiterated his determination to build a state anchored on inclusive economic growth and sustainable development, insisting that his administration has not wavered from its electioneering promises to the people.
Okowa stated that many programmes and projects have been executed, adding several others are on going while few others needed urgent attention and follow up.
“As we celebrate the notable achievements in the last two and half years, we are also mindful of the fact that there is still plenty of work to be done.
“Many families are still reeling from the harsh effects of recession. Many of our youths are leaving school without skills they need for the 21st century market place. Many small scale businesses are struggling to stay afloat.
“Therefore, we must give serious attention to putting our people to work and providing the enabling environment for small and medium scale businesses to thrive,” he stated.