October 27, (THEWILL) , has presented a budget of N561.8 billion for 2023 to the State House of Assembly for approval.
Tagged “Budget of Seamless and Stable Transition”, Okowa said the figure showed an increase of 17 per cent over that of 2022.
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 the 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’s unwavering commitment to infrastructural development.
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.
”The signs are obvious with a performance of 89 per cent of the budget in the first nine months of the current year. We shall continue to sustain and improve on the measures taken thus far which culminated in the increased revenue profile.
”While new sources of revenue are being explored, we shall also intensify enforcement of appropriate tax legislation. It is, therefore, our projection to generate the sum of N95 billion as IGR in 2023, representing 17 per cent of the total projected revenues for the year”, he said.
Okowa explained that the IGR estimate for 2023 was higher than that of 2022 by N15 billion, with a proposed growth rate of 19 percent, adding that the budget would focus on strengthening the existing administrative institutional framework, building the capacity of public servants, ensuring value for money and improve the quality of public service delivery.
”The State Government will also strengthen the relevant institutions of the state responsible for sustaining the reforms and gains of the Fiscal Transparency, Accountability and Sustainability (SFTAS) programme of the World Bank, which has recorded tremendous improvements in our financial administrative processes”, he added
According to him, the 2023 estimate provides for sustained investment in new and ongoing projects, the area 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.”