Delta State governor, Dr Ifeanyi Okowa, on Tuesday, presented a budget of N378, 484,397,889 of for 2021 fiscal year to the state house of assembly.
The amount which is N96,152,501,504 or 34.05 per cent increase over the revised budget (from N395bn to N282bn) of 2020 was necessitated by the realities of the times with respect to a gradual improvement in revenue inflow from the federal allocation as the impact of COVID-19 is easing.
A break down of the budget showed recurrent estimates of N171,230,826,568, representing 45.24 per cent as against N152,450,230,043 for 2020 and capital budget of N207,253,571,321, which translates to 54.78 per cent compared with N129,881,666,342 this year.
Giving further break down of what he tagged Budget of Recovery, Okowa said that the total proposed recurrent expenditure was higher than the N152,450,230,043 figure of the revised 2020 by N18,880,596,524, which is approximately 12.31 per cent increase
The capital estimate is higher than the N129,881,666,342 budgeted in the revised 2020 budget by N77,371,904,980 or 59.97 per cent increase.
According to him, the increase stemmed from the gradual improvement in some revenue streams, especially the improvement in receipts from FAAC.
He said personnel cost of N85,303,761,431, the overhead cost of N59,958,137,946, and consolidated Revenue Fund Charges of N25, 968,927,191 was captured under the recurrent estimates.
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He stated that the personnel cost was higher than the 2020 revised budget figure of N82,891,689,326 by N2,412,072,105 or a variance of 2.90 per cent while the overhead cost is N15,868,524,420 higher than the previous year’s estimate of N59,958,137,946, which is a variance of 35.68 per cent.
The marginal increase of the personnel cost Okowa explained was to accommodate the reinstatement of the workers new minimum wage which was shelved for a short period in the heat of the sharp revenue drop during the pandemic.
He remarked that the proposed capital estimate for the 2021 fiscal year is N207,253,571,322, accounting for 54.76 per cent of the total budget sum of N378 billion. This estimate is higher than the N129,881,666,342 budgeted in the revised 2020 budget by N77,371,904,980 or 59.97 per cent increase.
“The increase stemmed from the gradual improvement in some revenue streams, especially the improvement in receipts from FAAC. There is a corresponding increase in funding of critical capital projects that can create wealth and improve the quality of lives of our people.”
The governor hinted the 2021 budget was primarily focused on protecting and supporting the people of the state in a COVID-19 environment, accelerating infrastructural renewal, incentivizing growth, enhancing job creation, engendering social inclusion, and developing sustainably.
Others include building on the foundations that have been laid over the last five years, seeking to erect a modern, competitive, strong, and diversified economy that can easily withstand external shocks establish a multi-pronged revenue generation process with a focus on efficient collection etc.
Delta budget
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