By Festus Ahon
ASABA—DELTA State Governor, Dr. Ifeanyi Okowa, yesterday presented a budget proposal of N271 billion for 2017 fiscal year to the state House of Assembly.

Presenting the budget on the floor of the House, Okowa said N152 billion was for recurrent expenditure while N119 billion was for capital expenditure.

The 2017 budget proposal is slightly higher than the 2016 budget estimate of N268 billion.

Giving details of the proposal, the governor explained that the main sources of funds included, Internally Generated Revenue, IGR, statutory allocations, value added tax and other capital receipts.

According to the governor, the recurrent expenditure of 56% of the total budget was lower with N1.4 billion, compared with the amount of N153 billion allocated to it in the 2016 budget.

Governor Ifeanyi Okowa of Delta State

Okowa said the capital expenditure of 44% of the total budget size was N4 billion higher than last year’s amount of N115 billion estimate for 2016 fiscal year.

Declaring that “the 2017 budget is a budget of fiscal consolidation and steady progress,” he said his administration would continue to cut unnecessary wastes and keep a tight lid on government spending.”

Decrying the spate of bombing of oil installations in the Niger Delta, which he said affected the revenue of the state in 2016, Okowa said: “For us in Delta State, it was a particularly painful and harrowing experience as most of the bombings and disruption of oil production occurred in our state. Consequently, we found ourselves in double jeopardy. With receipts from the Federation Account already plummeting, our plight was aggravated as our share from the Derivation Formula reached an all-time low. What our brothers and sisters need to know is that pipeline vandalism hurts us more than it hurts other parts of the country. Accruals to Delta State from the Derivation Formula is a function of how much oil we supply to the national oil company for export.

“Regrettably, the activities of the militants saw us slump from being number two among oil producing states to number four, resulting in severe damage to our finances. It is our hope that with the renewed engagement of all stakeholders by the Federal Government, and our willingness and determination to follow through with the peace process, the country and our state will experience a better 2017, devoid of the interruptions and disruptions that characterised the outgoing year.

“Nevertheless, our proposals and expectations for 2017 are grounded in cautious optimism. You will notice that the proposed budget size is marginally higher than the approved budget for 2016 because we are mindful of the current realities. It is incumbent on us as a government to present a budget that is practical, realistic and responsible. The challenges notwithstanding, the proposed 2017 budget is consistent with our S.M.A.R.T agenda as encapsulated in the Delta State Medium-Term Development Plan (DSMTDP) 2016-2019.”

Majority Leader of the Delta State House of Assembly, Mr Tim Owhefere had earlier in a motion seconded by the member representing Ika South constituency, Mr. Chuks Okoh. moved that the Governor be allowed to present the budget on the floor of the House.

The Deputy Speaker of the House of Assembly, Mr  Friday  Osanebi on behalf of the legislators thanked Governor Okowa for the cordial relationship between all arms of government in the state.