•Mulls completion of ongoing projects
Omon-Julius Onabu
An estimated budget size of N459 billion is being projected for the 2023 fiscal year by the Delta State Government as the Dr. Ifeanyi Okowa’s administration seeks to finish strong by striving to complete ongoing projects across the state.
The State Commissioner for Economic Planning, Dr. Barry Gbe, at the commencement of budget defense by respective ministries, departments and agencies (MDAs) in Asaba yesterday, hinted that the, “indicative figure” was subject to modifications before the final budget estimate.
Gbe stressed that the budget projection was influenced by spiraling inflation and high exchange rate in the country occasioned by poor showing of the naira against major international currencies, noting that the financial realities have had adverse effects on Delta State’s contractual obligations.
This situation, the Commissioner said, necessitated general upward review of contract sums for various ongoing projects in the light of inevitable demands by the contractors.
The projected budget figure would accommodate these differentials and it was based on projected national benchmark of $70 per barrel, oil price in the international market.
Gbe said, “While the current price of oil stands at $107 per barrel as against $57 per barrel as at 2022, we will organise the budget on a benchmark of $70 per barrel in advent of fall in oil prices.
“We do not want to leave a huge debt profile for the incoming administration by May 2023.”
He said the budget would, therefore, accommodate payment of outstanding interest on bank loans to the state.
To certain extent, the Russia versus Ukraine war has been a blessing in disguise for Nigeria as more countries currently bought the nation’s crude oil, he noted, adding that the huge oil subsidy in the country.
