In line with the belt-tightening measures meant to cushion the effect of declining revenue, the Delta State Government has slashed the 2015 budget by more than N155 billion.
Governor Ifeanyi Okowa had earlier, in his maiden meeting with the state lawmakers in June, laid bare the financial challenges before the state government, explaining that the 2015 Appropriation Act was no longer feasible or realistic under the circumstance.
Okowa subsequently forwarded a bill to amend the 2015 budget to the state house of assembly.
This followed the passage of the 2015 Appropriation Amendment Act by the Delta State House of Assembly with a total budget of N253 billion, down from the N408.8 billion initial 2015 Appropriation Act passed about five months ago.
Thus, the N408 billion total appropriation figure earlier passed by the legislature and assented to by the immediate past governor of the state, Dr Emmanuel Uduaghan, was pruned by N155.8 billion.
The followed the submission of report of the ad-hoc committee on the amendment of the 2015 Appropriation Act by the Chairman, Miss Erhiatake Ibori, prompted by a motion moved by the Majority Leader, Hon. Tim Owhefere, and seconded by Mr. Peter Uviejitobor representing Udu Constituency.
The 2015 Appropriation (Amendment) bill, which was presented to the House in a message from the state Governor Ifeanyi Okowa through the
Speaker, Hon Monday Igbuya, on Tuesday, September 8, 2015, was subsequently referred for further consideration to the ad-hoc Committee headed by Miss Erhiatake Ibori.
The legislature had, on April 15, 2015 passed the 2015 Appropriation Bill with N244.4 billion representing 65 percent of the total budget as expected capital receipts while N164.3 billion, representing 35 percent of the total estimates was for recurrent expenditure.
Prior to the presentation of the bill to the House, Governor Ifeanyi Okowa had during his appearance to present the state financial profile to the House three months ago, promised to send a more realistic bill to amend the 2015 Appropriation Act as the act was no longer realistic with the current oil prices (economic recession) in the country.
Explaining details of the pruning exercise, Ibori noted that the Appropriation Amendment Act was fashioned out by the re-ordering of the sum of N2.73 billion from specific sub-heads of the recurrent expenditure and the sum of N173.5 billion from specific sub-heads of the capital expenditure.
Therefore, the amended recurrent expenditure would be N162.8 while the amended capital expenditure is N90 billion, slashing the total budget to N253 billion, being the figures passed by the lawmakers.
She noted that the pruning was necessitated by shortfalls in revenue especially from the monthly federal allocation due to the fall in price of oil in the international market.
Since the “terminal period of the physical year is just a few months away” the Governor would have to review certain fiscal policies to accommodate the current economic situation and the reduced budget, Ibori said.
The bill was passed following a motion moved by the Majority Leader, Hon. Tim Owhefere and seconded by Hon Daniel Yingi representing Burutu I Constituency.
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