Delta State governor, Dr Ifeanyi Okowa, on Thursday presented an appropriation bill of N561.8billion for 2023 to the state’s house of assembly.
The estimate is made up of N235,208,340,101 for recurrent expenditure which represents 42% of the total budget, an increase of N46,996,627,425 or 25% from the 2022 budget of N188,211,712,676.
The sum of N326,612,256,423 was budgeted for capital expenditure representing 58% of the total estimates which represents an increase of N82,878,785,613 or17% growth from the 2022 budget.
Giving details of the recurrent expenditure, the governor said personnel cost will gulp N91,035,657,320, overhead cost N82,083,259, social contribution N8,267,230,932, social benefit N5,008,000,000, domestic loan repayment (Principal) N33,813,382,250, external loan repayment N300,000,000 and grants and contribution N14,700,810,306.
On the details of the capital expenditure, the governor disclosed that administrative sector takes N13,343,415,392, economic sector N172,129,985,428, Law and Justice Sector N3,391,710,003 while regional Sector will cost N64,225,000,000 among others.
Ministry of work has the highest allocation of N111.4b in view of the state unwavering commitment to infrastructural development.
Presenting the bill christened “Budget of Seamless and Stable Ttransition” to the lawmakers, Dr Okowa said the 2023 budget would be funded mainly from internally generated revenue which is projected to rake into the state coffers the sum of N95 billion.
He said while new sources of revenue were being explored, enforcement of appropriate tax legislation would be intensified just as the sum of N357,996,119,852 or 64% of projected total revenue for the 2023 fiscal year is expected to come from statutory allocation.
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According to him, the 2023 estimate provides for sustained investment in new and ongoing projects, the awaa of employment and business opportunities, the resourcing of the people with the relevant skills and technical know-how to take advantage of those opportunities, the creation of a vibrant social services sector, and a more peaceful and secure climate to enable an investor-friendly environment that makes Delta State the preferred destination for foreign and local investors.
He noted: “We should not be under any illusions whatsoever that it is going to be smooth sailing.
“The national economic and fiscal outlook is anything but cheery. The economy faces headwinds from fiscal instability arising from huge debt overhang, runaway inflation, massive exchange rate depreciation, record-high subsidy costs, high interest rates, insecurity, and food crisis.
“In a sense, the bleak economic outlook gives me the deja vu feeling; it reminds me of the early days of this administration when the economy was reeling from the harsh effects of the global slump in the international oil market.
“A cautious approach is, therefore, required to strike a balance between meeting the needs and expectations of our people and achieving fiscal consolidation. This is in line with the administration’s commitment to maintain fiscal prudence and discipline in order to ensure long term fiscal sustainability.”