Delta targets N70bn IGR in 2017, presents N270.910bn budget proposal

The Delta state government has announced target of N70.165billion from Internally Generated Revenue (IGR) for the 2017 fiscal year. This will represent 26.90 percent of the total projected revenue for the state.

The state governor, Dr. Ifeanyi Okowa, who made this known while presenting the 2017 budget at the state House of Assembly, Asaba, also announced a budget proposal of N270.910billion for the year, stating that the amount comprises the N151.909billion or 56.07 percent for recurrent expenditure and N119.001 or 43.93 percent for capital expenditure.

Saying that the budget had shown a slight increase of N2.731billion or 1.02 percent, compared to the 2016 approved budget of N268.179, the governor explained that the IGR would be sourced from the public, tax receipts from oil companies and oil servicing companies among others.

Regretting the continued militants’ activities within the Niger-Delta region, especially in the state, which has had negative impact on its IGR, the governor disclosed that an economy that is diversified is better positioned to cope with, especially the type of shock the state had currently be experiencing.

His words; “It has become imperative for us to explore other untapped sources to shore up the state’s Internal Revenue base to enable us achieve its developmental aspirations”. Stating that the state was currently reviewing the existing rates, fees, changes and levies in the state.

He said that revenue collections are being streamlined to plug leakages and ensure a more efficient tax collection and administration, adding that the state had moved towards the conclusion stages of harmonizing the various taxes in the state in line with the consolidated revenue law 2009 of Delta State (as amended).

He said; “Our sources of fund for the 2019 budget as proposed are as follows: internally generated revenue (approved 2016 budget) 75, 398,226,742, (proposed 2017 budget) 70, 165, 959, 503, 25.90%, statutory allocation including/mineral revenue derivation (2016 approved budget) 137, 948, 341, 497, (proposed 2017 budget) 148, 939, 012, 121, 54.98% value added tax (approved 2017 budget) 10, 218, 715, 326, (approved 2017 budget) 10, 515, 786, 230.3.88% other capital receipts (approved 2016 budget) 44, 613, 872, 608, (approved 2017 budget) 41, 290, 224, 379, 15.24”.

On statutory allocation for 2017 budget, the governor said that in line with the state’s fiscal strategy forecasts, the sum N148.939billion or 54.98% of project total is expected to come from it, adding that the optimistic forecast would be based on expected improvements in the fiscal and financial discipline of the federal government and its engagement with elders/leaders of the Niger-Delta region to resolve the issue of pipeline bombing.

Noting that recurrent expenditures was estimated at N151.909billion made up of personnel costs of N70.290billion, or 46.27%, the governor disclosed that overhead costs is estimated at N31.162billion or 20.51% adding that the consolidated revenue fund charges has a proposed sum of N50.456billion or 33.21%.

On capital expenditure, Governor Okowa proposed the sum of N119.00billion, saying that the sum of N4.114billion or 3.58% higher than the 2016 capital budget of N114.886billion, he said that to improve the effectiveness of the job creation programmes, some reforms were introduced adding the sum of N1.3billion was estimated to sustain the initiative in the 2019 fiscal year.

On Agriculture & Finance Investment, Governor Okowa explained that a total sum of N335million would be provided for Agriculture and N500million for micro-credit scheme in 2017 budget proposal.

For Road Infrastructure/Education, the governor estimated the sum N35. 188billion on road infrastructure, disclosing that a whopping sum of N27.2billion was spent between June till date on the completing of 55 roads projects, while the sum of N12billion earmarked for education in 2017 fiscal year.

On Health, Governor Okowa said the sum of N1-2 billion would be provided for the commissioner’s activities during 2017, while N6.3billion allocated to the health sector as capital expenditure.

On Environment/Urban Renewal, the governor announced the sum of N1.2billion for 2017 construction of drainage system while N1.2billion for Urban Renewal Services.

A review of the 2016 budget indicated that the state government between January to September, recorded a total revenue performance of N118.154billion out of this amount, the sum of N61.682billion was received as statutory allocation from the federal account as the amount represented 67.07% performance of the proportionate estimate of N91.965billion.

The governor further disclosed that the sum of N29.943billion was recorded as internally generated revenue IGR out of the projected revenue of N50.265billion in 2016 performance or 59.57%, adding that the sum of N3.500billion was received from other capital receipts against the proportionate budget of N29.742billion during the period under review.