The proposed revised budget of the Delta State Government for the 2020 financial year has passed second reading on the floor of the State Assembly.
The total budget of the state for 2020 fiscal year is now two hundred and seventy nine point eight billion naira, as against the earlier approved budget of three hundred and ninety five point four billion naira.
The revised budget is made up of one hundred and fifty two point seven billion naira for recurrent expenditure and one hundred and twenty seven point one billion naira for capital expenditure.
Governor Ifeanyi Okowa’s letter conveying the Amendment bill and schedules of the revised budget to the state legislature was read at plenary by the Speaker, Honourable Sherrif Oboriovwori and adopted for further consideration.
Governor Okowa in the letter explained that the new financial framework had eleven point one – three percent decrease from the earlier approved one hundred and seventy two billion naira recurrent expenditure budget, while the capital budget of two hundred and twenty three billion naira was reduced by forty three point zero nine percent.
He stated that the earlier sum was hinged on some macro economic and financial projections usually relied upon by government for budgetary purposes.
Senator Okowa, however, regretted that the macro economic and financial indices could no longer be relied upon for funding of the 2020 budget due to the raging Covid 19 pandemic which had triggered a sharp drop in the price of crude oil and a slide in the exchange rate with the attendant negative effect on the revenue accruable to government.
The Governor said the new state budget of two hundred and seventy nine point eight billion naira was twenty nine point two five percent lower than the earlier approved 2020 budget of three hundred and ninety five point four billion naira.
The Majority Leader, Honourable Tim Owhefere, in a motion, moved for the suspension of order twelve, rules 77, 78 and 79 to enable the House take the second reading and the motion was unanimously adopted.
Owhefere also led the debate on the merits of the proposed revised budget, arguing that it had become imperative in view of the current economic realities occasioned by the global corona virus pandemic.
In their contributions, the Deputy Majority Leader, Oboro Preyor, Chief Whip, Pat Ajudua, Deputy Chief Whip, Solomon Ighrakpata, Majority Whip, Festus Okoh, Emeka Nwaobi, representing Aniocha North, Charles Oniyere, Ughelli North 1 and Ekpotuareyin Pullah, Burutu 2, commended Governor Ifeanyi Okowa for his proactiveness to governance.
The lawmakers maintained that the proposed revised budget was expected following the continued fall in oil price in the international market occasioned by the ravaging Covid 19 pandemic.
At the conclusion of debate, the Majority Leader, Tim Owhefere , moved for the second reading of the bill for a law seeking to revise the budget, which was unanimously adopted.
The Speaker, Honourable Sherrif Oboriovwori, thereafter referred the bill to the House Committee on Finance and Appropriation for further legislative actions.
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