Delta state governor, Dr. Ifeanyi Okowa, Thursday, presented a budget proposal of N469, 495, 968,075 to the state House of Assembly for the 2022 appropriation.
The budget titled, Budget of Inclusive Growth and Accelerated Development, is made up of N185,357,692,561 for recurrent expenditure and N284,138,275,514 capital expenditure, which shows an increase of N85,541,370,185 over the 2021 budget figure.
According to Okowa, “The capital expenditure for 2022 is estimated to be N284,138,275,514, chalking up nearly 60.5% of the total budget,” adding that “the capital budget will be utilized in funding infrastructural development, acquisition of assets, and investments in human capital.”
Dr. Okowa said the increase was based on anticipated exchange rate gains, increase in VAT collection, and other capital receipts, which of course meant an improvement in the internal revenue generation, giving room for allowance to capture 80 percent of ongoing projects in the budget so that none of the projects initiated is uncompleted.
He explained that “the total projected recurrent expenditure of N185,357,692,561 for 2022 is proposed to be spent to meet government’s financial obligations on salaries, wages and the day-to-day running of Ministries, Departments and Agencies (MDAs) of government.”
He said the 2022 budget will 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, licenses, grants and domestic credit.
While emphasising that the budget is targeted at the completion of on-going projects and new projects in the critical areas of needs, Okowa earmarked the sum of N105.3 billion for road and bridge infrastructure and N7.5b each for the Delta State Capital Territory Development Agency and the Warri/Uvwie and environs development in the proposed 2022 budget, as well as road infrastructure and storm water/flood control.
The governor earmarked the sum of N9.1bn for the Ministry of Higher Education to execute projects in the fiscal year, while government efforts to upgrade infrastructure in public schools, so as to reduce the spate of abandoned projects gulped N18.9 billion proposed for capital expenditures for primary and secondary education sector.
Okowa also proposed N2.0 billion to be spent by the mainstream Ministry of Agriculture and Natural Resources in 2022, as “other intervention measures will continue to receive funding through the Job and Wealth Creation Bureau, Agro Industrial Park Project, among numerous other supports for the agricultural value chain.”
