Omon-Julius Onabu in Asaba
The Delta State Government at the weekend revealed that it had concluded to propose a budget estimate of N425 billion of the House of Assembly for the 2022 financial year
The Commissioner for Economic Planning, Dr Barry Gbe gave this figure after the meeting of the reconstituted State Executive Council (EXCO) presided by the state governor, Dr. Ifeanyi Okowa in Asaba Friday.
At a session with journalists, Gbe said the proposed budget was tilted in favour of capital estimates as against the recurrent the government was determined to complete many ongoing infrastructure projects.
He said the approval of the proposal was advised by consideration of the Medium Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP) in line with the Fiscal Responsibility Law 2020.
Gbe, however, explained that the N425 billion for 2022 was approved as EXCO reviewed upwards his ministry’s initial proposed budget estimates totalling N388 billion for the fiscal year, in order to accommodate other matters not covered in the ministry’s proposal.
While underscoring the fact that the N425 billion was only “indicative”, the commissioner said: “We will be going to the House of Assembly with an indicative figure of N425 billion as a total budget size for 2022.
“The micro-economic indicators that informed the indicative 2022 budget were a deliberate adoption of the Federal Government MTEF and FSP where they projected crude oil to be sold at 57 dollars per barrel in 2022, with daily production of oil at 1.88 million barrels and exchange rate of N410 to a dollar.
“These are the indicative figures that made up the micro-economic framework of the federal government; and, that is what we also used (as the benchmark) in our projections.
“However, the Internally Generated Revenue (IGR), which for 2021 half-year was put at N35 billion, is to be scaled up through what we are trying to put in the informal sector, so that we can become a little ambitious and then increase it from the N65 billion plus of 2021 to doing N75 billion in 2022.
“We also try to scale down what we called net financing, which is to say that we don’t need to borrow much to increase the revenue side of our 2022 budget. However, in our intention to finish strong, we felt that there would be a need to also maintain some figures around net financing.
“So, the revenue side of the budget for 2022 will be adequately funded through the statutory allocation, the IGR of the state, grants that we expect from donor agencies and multilateral agencies like the World Bank, UNESCO, UNICEF and some others that might likely come up.”
Also speaking, the Stare Commissioner for Information, Mr Charles Aniagwu, disclosed that EXCO also approved the construction of the about 756-meter long Amoro Street in Enerhen in Uvwie Local Government Area.
Similarly, the council approved for construction Osamor Street in Ika North-East and Ozu/Onyia/Ogbe streets in Ekuku-Agbor in Ika South and the Okpolo/Owien Road in Isoko South local government areas.
He said a high-powered committee headed by the Deputy Governor had been set up to look into issues of sanitation in the state, adding that the committee was expected to come up with recommendations on certain steps to be taken to ensure the maintenance of a more healthy environment.
Aniagwu said: “A memo was also brought forward by the Warri/Uvwie and Environs Development Agency, on the account of the amount of storm water drainage that is being constructed by the agency, for the purpose of increasing the tempo of work and also including certain aspects of Phase lll and Phase lV.
“You will recall that we have started the construction of the project in phase l and phase ll but in the course of the progress on that work, it was discovered that there is need to address certain areas in Phases lll and lV because the return of the rains has shown that if those areas were not done, it will affect what is being done in Phases l and ll. So, that addendum was brought forward for approval by the council.”
“The EXCO approved the UTM Offshore Limited for Delta and that is for us to invest in floating Liquified natural gas project and EXCO approved that because it is believed that this investment will not only protect our future, but it is an investment that will, to a very large extent, give us opportunities to create more jobs for our people.”
