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Okowa presents 2022 appropriation bill to Delta Assembly

... proposes to spend N469.4bn

Governor Ifeanyi Okowa of Delta State, on Thursday, presented the state’s 2022 appropriation bill to the Delta State House of Assembly, proposing a budget estimate of N469,495,968,075.00 for the fiscal year 2022, for the execution of projects and programmes.

The budget christened ‘budget of inclusive growth and accelerated development is made up of N185,357,692,561.00 for recurrent and N284,138,275,514.00 for capital projects.

Speaking while presenting the budget, Okowa said the 2022 budget showed an increase of N85,541,370,185 over the 2021 approved budget figure.

The increase is based on anticipated exchange rate gains, increase in VAT collection, and other capital receipts. There is also a corresponding improvement in our Internal Revenue Generation, which gives allowance for us to capture 80% of our ongoing projects in the budget so that none of the projects we initiated is uncompleted by the time this administration completes its tenure.

It is important to emphasize that the 2022 budget is targeted at the: completion of on-going projects and new projects in the critical areas of needs greater transparency and proper accountability in public expenditure so that citizens can always get value for money in all projects and programmes of Government, he said.

The budget is also targeted at creation of conducive environment for investors to operate in the state; expansion of the state revenue base in the area of Internally Generated Revenue (IGR); and keeping faith with the State Arrears Clearance Framework for the period of 2022-2024

He said the following macroeconomic assumptions were used in the preparation of the 2022 proposed budget: crude oil production benchmark of 1.88 mbpd; oil price of $57 per barrel; exchange rate of N410/$1); National Real GDP Growth rate of 4.20% and National inflation of 13%.

According to him, the budget would be funded from the regular revenue sources, including opening balance from the previous year, Statutory Allocation, 13% Oil Mineral Fund, taxes and non-tax revenues such as fees, fines, permits, rents, interests, dividends and licenses. Other revenue sources include grants and domestic credit. Details are as follows:

“We will continue to give vent to intensive taxpayer education, as well as make improvements in tax audits and enforcement to boost our IGR. Furthermore, with an expanding tax base and conducive business environment, the State Government is getting more tax revenues without overtaxing the economy and businesses. And so, with fiscal discipline, efficiency, and delivering value through prudent spending, we are now progressing within our means and driving our economy towards achieving our long-term vision of economic diversification, self-reliance, and inclusivity” he said.

“In conclusion, it is pertinent to point out that the 2022 Budget would be the last full year budget to be implemented by the administration. Hence, we are careful to pursue a prudent policy stance that will entrench efficient spending, curb waste, engender inclusivity, and enable excellent service delivery,” the governor said.

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