Omon-Julius Onabu in Asaba
A 2023 budget proposal of N561.82 billion was yesterday presented to the Delta State House of Assembly by Governor Ifeanyi Okowa.
The appropriation bill was christened, “Budget of Seamless and Stable Transaction,” which the governor said was being done in an atmosphere of both, “hope and uncertainty.”
The amount proposed for the 2023 fiscal year was an increase of about 17 per cent above that for the 2022 fiscal year.
The Delta 2023 Budget was made up of N326.6 billion as capital expenditure and the sum of N235.2 billion as recurrent expenditure, Okowa revealed.
Okowa, who was in the company of his deputy, Kingsley Otuaro, Secretary to the State Government (SSG), Patrick Ukah as well as members the State Executive Council and other ranking government functionaries, noted that the terminal budget for the 2023 fiscal year was a product of meticulous research and planning in line with current realities.
The capital and expenditure estimates by the Okowa administration was presented to the state legislature presided over by the Speaker, Hon Sheriff Oborevwori, who noted that budget was truly unique in the sense that it was the last time Okowa would be standing in the hallowed chamber of the House to present an annual budget before the members.
Okowa, who commended the consistent convivial relationship between the executive and legislative arm of the government in Delta, said, “I wish to announce that the projected Budget outlay for 2023 fiscal year is N561,820,596,524, showing an increase of 17 per cent from 2022 Budget.”
The economic sector was allocated the largest share with N172.129 billion while the highest sub-sectoral capital expenditure allocation of N111.4 billion went to the Ministry of Works as the governor pledged to continue to provide infrastructure including roads, bridges and drainages across the state.
Also, the regional sector was allocated the sum of N64.225 billion and social sector had an allocation of N70.522 billion or about 22 percent of the capital expenditure budget.
Also, the administration sector had an estimate of N13.343 billion while law and justice was allocated the sum of N3.391 billion, which represented just one percent of the total capital estimate.
Furthermore, the breakdown showed recurrent expenditure of N235,208,340,101, which represented 42 per cent of the total expenditure and an increase of N46,996,627,425 or 25 per cent from the 2022 budget of N188,211,712,676.
Giving highlights of the expected revenue sources, the governor said, “Our projection is to generate the sum of N95 billion as Internally Generated Revenue in 2023, representing 17 per cent of the total projected revenues for the year.
“The IGR estimates for 2023 is higher than the 2022 approved estimates by N15 billion, which is a proposed growth of 19 per cent over the current year’s estimate.”
The estimated receipts from the Federation Account derives from the crude oil benchmark of $70 per barrel, which was based on the forecast of the state’s Fiscal Strategy Paper as a guide.
Accordingly, “the sum of N357,996,119,852 or 64 per cent of projected total revenue for the 2023 fiscal year is expected to come from statutory allocation.”
This amount was more than the sum of N259,419,628,938 budgeted for the 2022 fiscal year by N98,576,490,914 or 38 per cent growth, an increase prompted by restoration of peace in oil producing communities coupled with the rise is crude oil price in the international market.
Okowa further noted, “Essentially, the goal of the 2023 Budget is to ensure that the gains of this administration are consolidated and expanded. Ongoing projects must be completed while new ones must come on stream. “Notwithstanding the persistently challenging external conditions, it is incumbent on the leadership to address the socio-economic needs of our people and ensure that their legitimate aspirations are realised.
“To successfully do that requires that we must be conscious of the decisions we make and guided by the obligation to carefully weigh every available option in the light of our fiscal realities vis-à-vis the demands of good governance.
“It is our reasonable expectation that the 2023 Budget will significantly address current structural challenges of the economy, improve the business environment, accelerate economic development, engender inclusivity, promote social harmony, and ensure seamless transition to a new administration.”
