Ikpeazu Presents N147.8bn Budget for 2022 Fiscal Year

Emmanuel Ugwu-Nwogo in Umuahia

Abia State Governor, Okezie Ikpeazu, yesterday presented a proposed 2022 budget of N147,787, 781,300 before the state House of Assembly.

He said the 2022 budget, which is 10.81 percent above the budget for the outgoing year, was based on 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy of the federal government, as adopted by his administration.

Giving the breakdown of the budget estimate, Ikpeazu said the recurrent expenditure would consume N66,830,193,200 representing 45 percent of the total outlay while N80,957,588,100 or 55 percent of the budget is for capital expenditure.

There was significant increase in the capital expenditure, as it was enhanced by 16 percent over the previous year while the recurrent expenditure was increased by 6.29 percent above the 2021 allocation.

Ikpeazu told the state Assembly that the budget proposal christened ‘Economic Recovery through Industrialisation and Inclusive Growth’, was prepared under uncertain macroeconomic and social environment.

According to him, “We are all aware of the changes that have occurred in the global socio-economic environment since 2019,” he said, adding, that in the past two years, the COVID-19 pandemic has distorted economic and social life at all levels.

The governor hinted that the 2022 budget outlay could well be a shot in the dark because “even as we prepare for 2022, the dangers do not appear to be completely over; the socioeconomic and business environment is yet to be fully clear.”

While pointing out that “2022 is a transition year,” with political activities expected to be intensified, Ikpeazu assured the state that his administration would not be distracted as it would remain focused in the delivery of democracy dividends.

He said: “My administration will approach the transition with caution to ensure that it does not derail the economic projections and plans of the government.”

He said his administration was in tune with the dynamics of the present system of things in which “changes in the knowledge economy are now so dominant and dynamic that they affect all spheres of economic and social life.

“It is imperative on the government to lead the way for Abians to also adopt and adapt to these new ways. Not doing so will amount to social and economic peril.”

In his response, the Speaker of the Assembly, Hon Chinedum Orji, assured the governor that the legislature would give the 2022 fiscal policy of the state a speedy consideration.