ADDRESS BY
HIS EXCELLENCY, SENATOR, DR. IFEANYI OKOWA, GOVERNOR OF DELTA STATE, ON THE
OCCASION OF THE PRESENTATION OF THE 2017 BUDGET PROPOSAL TO THE DELTA STATE
HOUSE OF ASSEMBLY ON THURSDAY, NOVEMBER 10, 2016
Mr
Speaker,
Honourable
Members
It is my pleasure
to present the 2017 Budget Proposal to this honourable house.
2. I do so with unwavering confidence
in our ability to navigate our way out of the current economic challenges and
move the economy of the State towards growth, inclusion, social cohesion and
prosperity for all.
3. Since
the last time I addressed this house, the national economy has gone into
recession, making it harder for us to deliver on our set goals as envisioned in
the 2016 approved budget. As at today, the nation has realised only a fraction
of its projected earnings, no thanks to the continuing low price of oil and the
unfortunate incidents of pipeline bombings in the Niger
Delta region. Even though the price of
oil in the international market was, for most of the year, marginally higher
than the budget benchmark of $38 per barrel, the country could not benefit from
it because we fell far short of the production quota of 2.2 million barrels per
day as result of the deleterious effects of militancy in the Niger Delta.
4. For
us in Delta, it was a particularly painful and harrowing experience as much 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.
5. What
our brothers and sisters need to know is that pipeline vandalisation 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 (2) among oil producing States to number four (4),
resulting in severe damage to our finances.
6. 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.
7. 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.
8. 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.
-
First, it delivers on our policy of fiscal
consolidation and good governance by ensuring that government continues to live
within its means. Managing our resources in a prudent and sustainable manner
not only enables government to function efficiently and effectively, it is
crucial to inspiring public confidence and attracting needed capital to build a
stronger, more diversified economy.
-
Secondly, it affirms our commitment to inclusive
growth and social cohesion through training and the provision of economic
opportunities for youths, women and unemployed graduates under our Job Creation
Scheme, technical and vocational education programmes, as well as initiatives
and programmes by the various MDAs.
-
Thirdly, it underscores our determination to
accelerate infrastructure development to increase potential growth.
9. Before
unveiling the details of the 2017 budget proposal, please permit me, Mr Speaker,
to do a quick review of the 2016 approved budget.
REVIEW OF THE YEAR 2016 BUDGET (JANUARY TO SEPTEMBER, 2016)
10. In the 2016
fiscal year, a budget of two
hundred and sixty-eight billion, one hundred and seventy- nine million naira (N268.179bn) was approved for the
services of the State Government. The amount is made up of a recurrent
expenditure budget of one hundred
and fifty-three billion, two hundred and ninety-two million naira (N153.292bn), and a capital
budget of one
hundred and fourteen billion, eight hundred and eighty-nine million naira (N114.889bn). The outline of the 2016
budget is as follows:
(A)
REVENUE
|
S/N
|
Sources
|
Approved 2016 Budget
|
%
Appropriation
|
|
I
|
Internally
Generated Revenue
|
75,398,226,742
|
28.11
|
|
Ii
|
Statutory
Allocation Including Mineral Revenue Derivation
|
137,948,341,497
|
51.44
|
|
Iii
|
Value
Added Tax
|
10,218,715,326
|
3.81
|
|
Iv
|
Other
Capital Receipts
|
44,613,872,608
|
16.64
|
|
|
Total
|
268,179,156,173
|
100.00
|
(B)
EXPENDITURE
|
S/N
|
Details
|
Approved 2016 Budget
|
%
Appropriation
|
|
I
|
Recurrent Expenditure
|
153,292,352,956
|
57.16
|
|
Ii
|
Capital Expenditure
|
114,886,803,217
|
42.84
|
|
|
Total
|
268,179,156,173
|
100.00
|
BUDGET PERFORMANCE (JANUARY TO SEPTEMBER, 2016): REVENUES
11. The State
Government, during the nine months of January to September, 2016, recorded a
total revenue performance of one hundred and eighteen billion, one
hundred and fifty-four million naira (N118.154bn), representing an overall performance of 66.09% over
expected proportionate revenue receipts of one hundred and seventy-eight
billion, seven hundred and eighty-six million naira (N178.786bn). Out of this amount, the sum of sixty-one
billion, six hundred and eighty-two million naira (N61.682bn) was
received as Statutory Allocation from the Federation Account. The amount
represents 67.07% performance of the proportionate estimate
of ninety one billion, nine hundred and sixty-five million naira (N91.965bn).
12. On the other
hand, the sum of seven billion,
two hundred and sixteen million naira (N7.216bn) was recorded as
receipts from Value Added Tax (VAT) out of the proportionate projected
estimates of six billion, eight hundred and twelve
million naira (N6.812bn), representing a budget
performance of 105.93%.
13. The sum of
twenty nine billion, nine hundred and forty-three million naira (N29.943bn) was recorded as
Internally Generated Revenue (IGR) out of the projected revenue of fifty billion, two hundred and sixty-five million naira (N50.265bn), representing a
budget performance of 59.57%. The sum of three Billion, five hundred million naira (N3.500bn) or 11.77% was received from other capital receipts against the
proportionate budget of twenty-nine
billion, seven hundred and forty-two million naira (N29.742bn) during the period under review. I would like to
point out that the sum of fifteen
billion, eight hundred and eleven million naira (N15.811bn) or 13.38%
of the revenue came from unspent funds of the 2015 budget. These are Transfers
from cash and bank balances during the period under review (September, 2016).
14. The breakdown
of the revenue receipts from individual revenue sources is provided hereunder:
|
S/N
|
Sources
|
Approved 2016 Budget
|
Proportionate Revenue Budget Jan-Sept, 2016
|
Actual Revenue Jan - Sept, 2016
|
% Per
|
|
i
|
Internally
Generated Revenue
|
75,398,226,742
|
50,265,484,495
|
29,943,471,936
|
59.57
|
|
ii
|
Statutory
Allocation Including Mineral Rev. Derivation
|
137,948,341,497
|
91,965,560,998
|
61,682,654,457
|
67.07
|
|
iii
|
Value
Added Tax
|
10,218,715,326
|
6,812,476,884
|
7,216,768,923
|
105.93
|
|
iv
|
Other
Capital Receipts
|
44,613,872,608
|
29,742,581,739
|
3,500,000,000
|
11.77
|
|
|
Sub total
|
268,179,156,173
|
178,786,104,115
|
102,342,895,316
|
57.24
|
|
v
|
Transfer
(Cash and bank balance as at 31st December, 2015)
|
|
|
15,811,614,332
|
|
|
|
Total
|
268,179,156,173
|
178,786,104,115
|
118,154,509,648
|
66.09
|
15. The above
revenue receipts represent an aggregate decrease of forty nine billion,
seven hundred and sixty two million naira (N49.762bn) or 32.72%, compared to the sum of one
hundred and fifty two billion, one hundred and five million naira (N152.105bn) recorded for the
corresponding period of January to September, 2015. Statutory
Allocation was mostly affected by a large decrease of twenty nine billion, eight
hundred and forty seven million naira (N29.847bn) or 32.61%, compared to the sum of ninety one billion, five hundred and twenty nine
million naira (N91.529bn) recorded for the same period in
2015.
16. Internally
Generated Revenue recorded a marginal decrease of 4.82%. The sum of twenty nine billion, nine hundred and forty-three million naira (N29.943bn), was received this year
(2016) as against the sum of thirty one billion, four hundred and sixty
million naira (N31.460bn) received for the same period in
2015 (January – September, 2015).
BUDGET PERFORMANCE (JANUARY TO
SEPTEMBER, 2016): EXPENDITURES
17. Our
expenditure profile for January to September 2016 shows that a total sum
of one hundred and eighteen billion
naira (N118.000bn) was spent. Out of this amount, the sum of ninety nine billion, nine hundred and
twenty-eight million naira (N99.928bn) was incurred on recurrent
items as against a proportionate approved budget of one hundred and two billion, one hundred and ninety-four
million naira (N102.194bn),
representing a budget performance of 97.78%. The breakdown is
summarized below:
|
S/N
|
Recurrent
|
Approved 2016 Budget
|
Proportionate Recurrent Budget Jan-Sept, 2016
|
Actual Expenditure Jan - Sept, 2016
|
% Per
|
|
i
|
Personnel
Costs
|
68,453,584,572
|
45,635,723,048
|
47,951,188,430
|
105.07
|
|
ii
|
Overhead Costs
|
30,301,834,179
|
20,201,222,786
|
14,948,088,142
|
74.00
|
|
iii
|
Consolidated
Revenue Fund Charge
|
54,536,934,205
|
36,357,956,137
|
37,028,941,066
|
101.85
|
|
|
Total
|
153,292,352,956
|
102,194,901,970
|
99,928,217,638
|
97.78
|
18. The sum
of one hundred and fourteen billion, eight hundred and eighty-six million naira (N114.886bn) was
budgeted for Capital Expenditure. During the year, actual
expenditure for the period, January-September, 2016, was eighteen billion,
seventy-two million naira (N18.072bn) as against the proportionate
budget figure of seventy six
billion, five hundred and ninety one million naira (N76.591bn), representing a budget performance of 23.60%.
19. A breakdown
of the sectoral performance for the period is as follows:
|
S/N
|
Capital
|
Approved 2016 Budget
|
Proportionate Capital Budget Jan-Sept, 2016
|
Actual Expenditure Jan - Sept, 2016
|
% Per
|
|
i
|
Economic
|
26,162,664,599
|
17,441,776,399
|
3,987,884,582
|
22.86
|
|
ii
|
Social
|
18,482,711,898
|
12,321,807,932
|
2,096,514,600
|
17.01
|
|
iii
|
Environmental
|
26,827,145,368
|
17,884,763,579
|
2,579,365,734
|
14.42
|
|
iv
|
General
Administration
|
15,169,281,353
|
10,112,854,235
|
2,438,345,594
|
24.11
|
|
v
|
DESOPADEC
|
28,000,000,000
|
18,666,666,667
|
6,970,000,000
|
37.34
|
|
vi
|
Contingency
Fund
|
245,000,000
|
163,333,333
|
-
|
0.00
|
|
|
Total
|
114,886,803,217
|
76,591,202,145
|
18,072,110,510
|
23.60
|
2017 BUDGET ESTIMATES
20. Mr. Speaker,
distinguished Members of this Honourable House, I now present to you the Budget Estimates for the 2017 fiscal
year.
21. I wish to announce a budget proposal
of two hundred and seventy billion, nine hundred and ten million naira (N270.910bn) for the services of Delta
State Government in 2017. This
amount comprises the sum of one hundred and fifty-one billion, nine hundred
and nine million naira (N151.909bn)
or 56.07% for Recurrent Expenditure, and one hundred and
nineteen billion, one million naira
(N119.001) or 43.93% for capital expenditure.
22. The 2017 budget proposal shows a slight increase of two
billion, seven hundred and thirty-one million naira (N2.731bn) or 1.02%, compared to the 2016 approved budget
of two hundred and sixty-two billion, one hundred and seventy-nine million
naira (N268.179).
SOURCES OF FUND
23. The
main sources of funds for the 2017 budget as proposed are as follows:
|
S/N
|
Sources
|
Approved 2016 Budget
|
Proposed
2017 Budget
|
%
Proportionate
|
|
i
|
Internally
Generated Revenue
|
75,398,226,742
|
70,165,959,503
|
25.90
|
|
ii
|
Statutory
Allocation Including Mineral Revenue Derivation
|
137,948,341,497
|
148,939,012,121
|
54.98
|
|
iii
|
Value
Added Tax
|
10,218,715,326
|
10,515,786,230
|
3.88
|
|
iv
|
Other
Capital Receipts
|
44,613,872,608
|
41,290,224,379
|
15.24
|
|
|
Total
|
268,179,156,173
|
270,910,982,233
|
100.00
|
INTERNALLY GENERATED REVENUE
24. As you may be aware, Payee Tax receipts
from oil companies and oil servicing companies have been the major source of
IGR receipts for the State Government. The activities of the Niger Delta
militants have continued to impact negatively on our IGR, resulting in serious
cash flow problems.
25. An economy
that is diversified is better positioned to cope with the type of external
shocks that the State is currently experiencing. Hence, it has become
imperative for us to explore other untapped sources to shore up the State’s
internal revenue base to enable the government achieve its developmental
aspirations. We are currently reviewing the existing rates, fees, charges and
levies in the State. Also, revenue collections are being streamlined to plug
leakages and ensure a more efficient tax collection and administration.
26. Most
importantly, we are in the concluding stages of harmonizing the various taxes in
the State in line with the Consolidated Revenue Law 2009 of Delta State
(as amended). The law provides for the Assessment, Harmonization and
Consolidation of Internally Generated Revenue chargeable and
collectable by the State Government and Local Government
Councils in the State. At the end of the
day, we want to see a situation where only the Delta State Board of Internal
Revenue issues a single “Demand Notice” on taxes and levies collectable by the
State. This will go a long way to correct the wrong impression of multiplicity
of taxes.
27. Our
expectation is that the State would be able to realise the sum of seventy billion, one hundred and sixty-five
million naira (N70.165bn)
as internally generated revenue in 2017, representing 26.90% of the total projected revenues. The IGR estimates for 2017
is lower than the 2016 approved estimates by (five billion, two hundred and thirty-two million naira (N5.232bn) or 6.94%.
STATUTORY ALLOCATION
28. In line with
the State’s Fiscal Strategy forecasts, the sum of one hundred and forty
eight billion, nine hundred and thirty-nine million naira (N148.939bn) or 54.98% of projected total revenue for the 2017 fiscal year is
expected to come from Statutory Allocation. This amount is slightly more than
the sum of one hundred and thirty seven
billion, and nine hundred and forty eight million naira (N137.948bn) projected for the 2016 fiscal year by ten billion, nine hundred and ninety million naira (N10.990bn) or
7.97%.
29. This
optimistic forecast for 2017 is 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. It is also assumed that the
current reforms by the Federal Government, especially full disclosure of all
revenues in line with the International Public Sector Accounting Standard
(IPSAS), will help increase revenues that will accrue to the Federation Account
for sharing by the various tiers of Government.
OTHER CAPITAL RECEIPTS/MISCELLANEOUS
30. The proposal
for Capital Receipts for the 2017 budget has been scaled down from the sum of forty-four
billion, six hundred and thirteen million naira (N44.613bn) in the 2016 budget to forty-one billion, two hundred and ninety million naira (N41.290bn) or 15.24% in
2017, representing a reduction of three
billion, three hundred and twenty-three million naira (N3.323bn) or 12.97%. This
position reflects the need for cautious and scrupulous adherence to fiscal
discipline in the system, and reduce our exposure level.
RECURRENT EXPENDITURES
31. The recurrent
expenditure estimates for 2017 of one
hundred and fifty one billion, nine hundred and nine million naira (N151.909n)
is made up of personnel costs of seventy
billion, two hundred and ninety million naira (N70.290bn) or 46.27%, and overhead costs of thirty-one
billion, one hundred and sixty-two million naira (N31.162bn) or 20.51%. The Consolidated Revenue
Fund Charges has a proposed sum of fifty billion, four hundred and
fifty six million naira (N50.456bn) or 33.21%. On the whole, the recurrent proposal for 2017 is lower by one billion, three hundred and eighty-two
million naira (N1.382bn) or 0.90%, compared to the sum of one hundred and fifty three billion, two hundred and ninety-two million
naira (N153.292bn) in the approved
2016 budget.
32. The recurrent
expenditure estimates are summarized hereunder:
|
S/N
|
Items
|
Approved 2016 Budget
|
Proposed
2017 Budget
|
%
Proportionate
|
|
i
|
Personnel Costs
|
68,453,584,572
|
70,290,546,506
|
46.27
|
|
ii
|
Overhead Costs
|
30,301,834,179
|
31,162,242,050
|
20.51
|
|
iii
|
Consolidated Revenue Fund Charges
|
54,536,934,205
|
50,456,734,771
|
33.21
|
|
|
Total
|
153,292,352,956
|
151,909,523,326
|
100.00
|
CAPITAL EXPENDITURE ESTIMATES
33. The proposed
capital expenditure estimates for 2017 is one hundred and nineteen billion,
one million naira (N119.001bn). The
proposal is four billion, one
hundred and fourteen million naira (N4.114bn) or 3.58% higher
than the 2016 capital budget of one
hundred and fourteen billion, eight
hundred and eighty-six million naira (N114.886bn).
34. The sectoral
breakdown of the capital expenditure estimates is as stated hereunder:
|
S/N
|
Sector
|
Approved 2016 Budget
|
Proposed
2017 Budget
|
%
Proportionate
|
|
i
|
Economic
|
26,162,664,599
|
29,442,250,000
|
24.74
|
|
ii
|
Social
|
18,482,711,898
|
20,388,000,000
|
17.13
|
|
iii
|
Environmental
|
26,827,145,368
|
24,387,198,191
|
20.49
|
|
iv
|
General
Administration
|
15,169,281,353
|
15,784,010,716
|
13.26
|
|
v
|
Delta
State Oil Producing Areas Dev. Commission
|
28,000,000,000
|
28,000,000,000
|
23.53
|
|
vi
|
Contingency
|
245,000,000
|
1,000,000,000
|
0.84
|
|
|
Total
|
114,886,803,217
|
119,001,458,907
|
100.00
|
35. Mr. Speaker, Honourable Members, I
will now briefly touch on some sectoral highlights of the capital proposals as
contained in the 2017 budget estimates.
SECTORAL HIGHLIGHTS
Job Creation Scheme
36. In the 2015
programme cycle of the Job Creation Scheme, this administration trained and
established a total of one thousand and twenty seven (1,027) youths under the
Skills Training and Entrepreneurship Programme (STEP) and two hundred and fifty
six (256) under the Youth Agricultural Entrepreneurs Programme (YAGEP). The
target for 2016 is 1,000 unemployed youths consisting of 600 STEP and 400 YAGEP
beneficiaries. The State Government
has also introduced a new programme - Graduate Employment Enhancement Programme
(GEEP) – which will run on a pilot scale in the 2016 cycle. GEEP is designed to
cater for a distinct group of unemployed graduate professionals as a means of
widening the reach and influence of the job creation scheme.
37. To improve
the effectiveness, inclusiveness and impact of the job creation programmes,
some reforms have been introduced, beginning from the 2016 programme cycle.
YAGEP trainees are now being co-located in designated farm clusters to enhance
targeting, economies of scale, market off-taker arrangements, efficient
resource use and project monitoring. The STEP/YAGEP starter pack now has two
linked components – job creation grant and job creation microcredit, a measure
that will instil entrepreneurial mind-set and accountability among
beneficiaries and enhance financial sustainability of the programme. To ensure
social inclusiveness, the 2016 beneficiaries include Persons with Disabilities
(PwD).
The sum of N1.3billion is provided to sustain
this initiative in the 2017 fiscal year.
Agriculture:
38. Agriculture
is key to diversifying the economy of the State and inducing sustainable
economic growth. The agricultural and agribusiness development agenda is being
implemented through a variety of value chain support measures under the
Production and Processing Support Programme (PPSP). The measures include the
provision of extension services, improved technologies and efficient farm inputs
to boost farmers’ productivity, outputs and incomes., Also, I have set up the
Inter-Ministerial Committee to develop a Land Bank for enhancing access to
agricultural land by private investors. In the same vein, I have set up an
Agricultural Marketing Coordination Committee to support farmers in tackling
the perennial marketing challenges faced by farmers in the State.
39. A total sum
of N535million
is provided in the budget in the 2017 fiscal year for the Ministry of
Agriculture.
Finance
and Investment
40. One of the
cardinal objectives of this administration is to transform Delta State into a
preferred investors’ destination. We
have taken a major step towards the actualisation of this goal with the
creation of the Delta State Investment Development Agency. The Bill for the
establishment of the agency is before this honourable House and it is my
expectation that it would be passed speedily. When fully operational, the
agency will proactively engage with would-be investors in an open and
transparent manner to actualise their investment and business plans in the
State.
41. Developing a
robust and result-oriented partnership with the private sector is of utmost
priority to this administration. The publication of an Investment Brochure and
the successful hosting of the Economic and Investment Summit during the State’s
25th anniversary celebration have helped to create more awareness of
the immense investment opportunities in Delta State. Shortly after the Silver
Jubilee, I was the Keynote Speaker at the first ever Lagos Business
School/Nigeria Economic Summit Group Dialogue with Public Policy Makers, where
I presented a paper on “Public Policy and Governance in Delta State:
Opportunities and Challenges.”
42. I am happy to
report that all of these activities have spurred renewed interest from
reputable private sector investors in our State. As at today, we have signed several Memoranda of
Understanding with domestic and foreign private sector groups in energy,
housing, infrastructure, water resources and agriculture sectors.
43. In our
continuing efforts to develop and support micro businesses, the sum of N500million
is set aside for the Micro Credit
Scheme in the 2017 budget proposal.
44. The sums of N500million
and N150million
have been allocated for the development of Agro-Industrial Parks and the
Umunede Rest Park respectively. Agro-industrial parks are central to the
development of agricultural value chains in the State. Each will be driven by an anchor private
sector investor devoted to agricultural value chain development activities
including agro-processing, commercial farming, out-grower schemes, market
linkages and farm support services.
Road
Infrastructure
45. Admittedly,
the paucity of funds has not allowed us to move as fast as we would have loved
to in developing our infrastructure. Nonetheless, in the first year of our
administration, we constructed and completed 55 road projects covering over 148
kilometres (including 113 kilometres of concrete-lined drains) at a total cost
of N27.2
billion. Between June and now, a further N2b has been committed to the construction, reconstruction,
rehabilitation and completion of 29 roads across the State. We fully intend to
sustain this momentum in the coming year.
46. A total sum
of N35.188
billion is allocated to road infrastructure in the 2017 fiscal year.
Education
47. Technical
and vocational education is at the core of our educational policy, which
emphasises skills acquisition as against certificate acquisition. The sum of N900million
is earmarked to strengthen Vocational
and Technical Education in the State during the 2017 fiscal year.
48. As contained
in the 2016 budget, we intend to establish a Teacher Professional Development
Centre aimed at updating and upgrading
the skill set of our teachers by providing systematic and coordinated capacity
building for them. The Centre will also coordinate teacher’s professional
registration, licensing as well as offer continuous professional development
programmes. The sum of N400million
is proposed for the Centre
in the 2017 budget.
49. A total sum
of N12billion
is allocated to the education sub-sector for capital projects in 2017.
Health
50. This
administration is determined to build on the enviable record of the State in
health care delivery. Our guiding philosophy for this sector is the
establishment of a qualitative, affordable and accessible health care delivery
system in the State. In this connection, we are focussing on infrastructural
development of our hospitals and primary health care centres as well as the
procurement of drugs and cutting edge medical equipment in major health care
facilities across the three Senatorial Districts.
51. The Teaching
Hospital at Oghara is receiving good attention. The Central Hospital, Asaba, is
near completion and will be functional soon. The sums of N1.2billion, N400million, and
N300million have been proposed for the construction and remodelling of Central Hospital, Asaba; the Renovation
and completion of Primary Health Care Centres;
and Delta State Specialist Hospital,
Oghara, respectively.
52. Mr. Speaker,
we already have in place a Governing Board for the Delta State Contributory
Health Commission to effectively kick-start the State’s Contributory Health
Insurance Scheme. The healthcare
financing programme is designed to create a system where individuals or group
of people make monthly or yearly contribution for their healthcare cost thereby
giving them access to a defined package of quality healthcare services anytime
they need it - without having to pay at the point of service.
53. The sum of N1.2billion
is provided for the Commission’s activities during the 2017 fiscal year.
54. The sum of N6.3billion is also allocated to the
health sector as capital expenditure for the 2017 budget year.
Environment
and Urban Renewal
55. Delta State
is confronted with mounting urban blight, occasioned by perennial flooding,
inefficient waste disposal systems, dilapidated public buildings and crumbling
infrastructure. I think we all agree that there is need for urgent action to
attract infrastructural funding to build liveable cities and towns with a range
of housing, work and recreation opportunities for the benefit and enjoyment of
current and future generations.
56. One of the
strategies we are using to address the perennial flooding of Asaba, the State
Capital City, is the construction of Storm Drainage System for which the sum of
N1.2billion
is proposed in the 2017 capital budget.
57. This
administration has embarked on urban renewal in key towns and cities across the
state. The programme involves rehabilitation, reconstruction, and construction
of new roads, clearing of drains, environmental sanitation, public water
supply, and beautification in the form of leisure parks and gardens.
Accordingly, the sum of N1.2billion is proposed for the Ministry of
Urban Renewal in the proposed 2017 capital budget.
58. This is in
addition to the provision of N900million for the Direct Labour Agency for road
rehabilitation and other allocations for projects geared towards the facelift
of towns and cities.
59. The provision
of Housing is still a big challenge to this administration. However, the State
Government remains committed to tackling the needs of our people in conjunction
with private sector investors in order to close the housing gaps, especially in
major towns and cities of the State. Already, a Memorandum of Understanding
(MOU) has been signed by this administration for the development of affordable
housing for our people in the three Senatorial Districts. The aim is to
construct low income and medium income housing units around the State over the
next couple of years.
60. In view of
the nature of the Asaba Capital Territory in terms of its jurisdictional
demarcation and review of its original Master Plan, it has become necessary to
conduct an aerial study and mapping of the territory. When completed, the
aerial mapping would provide developmental indices for housing, transportation,
water supply, and industrial development. It will also provide a clear picture
for the planning of road networks and drainage.
This, we hope, will turn the State Capital into a preferred business and
leisure destination.
61. The sum of N3billion
is set aside for the development of the Delta
State Capital Territory Development Agency during the 2017 fiscal year.
Apart from specific provisons made for road construction in the Warri
metropolis, the sum of N1.2bn has
been provided for intervention in the oil city, while another N1.2bn is allocated for the
reconstruction of Effurun to Enerhen junction.
62. In our bid to
actively bring development to our brothers and sisters in the riverine areas,
we have provided for road development in Ugborodo, Ogulagha and Gbaramatu
kingdoms (N600m each) and the
building of a modern market in Burutu town. The Trans-Warri Road has a
provision of N1.2bn in the 2017
fiscal year.
General
Administration
63. This
administration is committed to the application of the rule of law. In this
regard, the state’s Justice System will continue to receive maximum attention
in the delivery of justice to our people. We shall continue with the
development of our courts and offices including residential quarters for our
judges throughout the State. The sums of N400million
and N174million
have been proposed for the High Court of
Justice and Customary Court of Appeal,
respectively, during the 2017 fiscal year.
64. The construction of
a befitting State Civil Service Secretariat Complex will commence in 2017.
Government also intends to complete the on-going construction of the Office of
the Head of Service Complex. No doubt, the construction of a new State Secretariat
Complex and the office of the Head of Service will not only save costs for the
government in the long term, but also enhance better coordination and
efficiency of government operations across the MDAs.
65. The sum of
N1billion
has been earmarked for the Secretariat
Complex, while N100million is provided for the Office of the Head of Service in the proposed capital budget of the
2017 fiscal year.
66. In 2017, we hope to extend our social
safety net through the provision of N1.2billion
for the State’s Social Security
programme. This
will cover agro-business, skill acquisition or outright disbursement of cash to
persons in dire conditions.
Delta State Oil Producing Areas Development Commission
(DESOPADEC)
67. In line with
the funding prescription of the law setting up the Commission, the sum of N28billion,
representing 50% of projected
derivation revenue receipts from oil accruable to Delta State is set aside for
DESOPADEC in the 2017 fiscal year.
Conclusion
68. I
begin my conclusion of this Address by reiterating our commitment to grow and
judiciously manage our economy as we move from sole dependency on oil to a
stronger, more diverse, and more resilient economy, with huge potentials for
job and wealth creation. Despite the difficulties this administration has
faced since inception, we have demonstrated our resolve to overcome our
economic challenges.
69. In
our first year in office, we created more than 17,000 private sector jobs; we
engaged in massive road construction as stated earlier; we rehabilitated and
reconstructed three technical colleges in the three senatorial districts; and
we are the first State in the Federation to launch the Universal Health
Insurance Scheme. These and many more achievements have been properly
documented in our First Year Performance Report. Given the uncertainty and
volatility of the times, these are accomplishments we should all be proud of.
70. I
am confident that we can do more in the coming year. The milestones attained so
far are due largely to the support, cooperation, patience and understanding of
all Deltans, beginning with this Honourable House.
71. Mr
Speaker, I wish to thank this House for the harmonious relationship that exists
between the Executive and the Legislature; it is undoubtedly a model for other
States to emulate. My sincere appreciation also goes to the members of the
State Executive, the Judiciary, Civil Service Establishment, Labour Unions,
traditional institutions and members of the press. This administration has been encouraged and motivated by the support from all and
sundry.
72. We
need to continue in the same spirit of togetherness, commitment and personal
sacrifice for the good of all. In this 2017 Budget of Fiscal Consolidation and Steady Progress, we shall
continue to cut unnecessary waste and keep a tight lid on Government
spending. Our efforts to boost
Internally Generated Revenue will be matched with zero tolerance for tax
evasion and crackdown on corruption in tax administration and collection.
73. We
cannot afford to become complacent. I, therefore, enjoin all of us to brace up
for the work ahead. We must shun wrong choices and actions that could turn back
the hands of the clock and derail our economic agenda. Our future and that of
the next generation depend on it.
74. It
is on this note, Mr Speaker, that I now present the 2017 Budget Proposal as
read.
75. Thank
you for your time and attention.
76. God
bless us all.
Office of the Governor
Government House
Asaba
November
2016
No comments:
Post a Comment