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Monday, September 26, 2022

Delta State to spend N207.5 bln on capital projects in 2021 ~Okowa

Delta State plans to spend a total of N207.52 billion on capital projects in the 2021 fiscal year, according to the details of the 2021 budget presented by the state governor Ifeanyi Okowa to the state house of assembly.

Okowa said the state will spend a total of N378.48 billion in 2021, consisting of N207.52 billion capital expenditure and N171.32 for recurrent expenditure next year.

According to him, the fiscal policy tagged “Budget of Recovery,” was consistent with his administration’s agenda of spending more on projects.

He said that capital expenditure constituted 54.76 percent of the Budget while 45.24 percent represented recurrent expenditure.

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He said the huge allocations for capital projects were consistent with his administration’s agenda of spending more on projects and programmes that would impact directly on the socio-economic wellbeing of the people.

The 2021 budget is N96.2 billion or 34.05 percent higher than the N282 billion revised approved budget of 2020.

The governor said that the 2021 budget proposals reinforced the state government’s commitment to road infrastructure, education, health, job and wealth creation programmes as the principal-drivers of the Stronger Delta agenda.

According to him, N113 billion, representing 89.94 percent of the capital budget is allocated to the economic sector while N35 billion is allocated to the social sector; the administration sector got 10.93 billion and the regional sector, N42 billion.

“In 2021, we propose to spend N66.66 billion on Road Infrastructure; N6.79 billion on Health; Education will gulp N23.55 billion; Agriculture, N2.04 billion and Water Sector, N1.83 billion.

“Job and Wealth Creation Bureau will gulp N1 Billion and Youth Development, N1.25 billion. These key sectors are very essential in our 2021 budget,” Okowa said.

He said that budget, which was derived from the state’s 2021-2023 FSP/MTEF, was anchored on crude oil production benchmark of 1.86 mbpd, oil price of 40 dollars per barrel, exchange rate of N379 per dollar, National Real Gross Domestic Product (GDP) growth of three percent and 11.95 national inflation rate.

“Overall, the proposed 2021 Budget is predicated on inclusive economic growth that is sustainable and people-centred, with strengthening fiscal sustainability through increased efficiency in spending, improved revenue mobilization and debt sustainability.

“It also entails improving processes and systems in Public Financial Management, and Monitoring and Evaluation, to bolster better public sector service delivery,” Okowa told the lawmakers.

He disclosed that since 2015, his administration had progressively increased its annual spending on education infrastructure and would continue to scale up investments in the sector as the state continued with plans to establish nine new technical colleges to take off in the 2021/2022 academic session.

The governor pointed out that due to the impact of the COVID-19 on the global economy, government spending was severely hampered by the pandemic, and that Delta was no exception.

He, therefore, stated that “the proposed 2021 Budget for Delta is primarily focused on protecting and supporting our people in a COVID-19 environment, accelerating infrastructural renewal, incentivizing growth, enhancing job creation, engendering social inclusion and developing sustainably.

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