The Delta State government has reduced the debt inherited from the Emmanuel Uduaghan-led administration to about N228,328,360,009 billion.
The state governor, Ifeanyi OKowa, made the disclosure at the presentation of the 2019 budget estimates of N376,095,083,451 billion to the Delta State House of Assembly n Wednesday in Asaba.
Okowa said in his inaugural address on assumption of office as governor in 2015 that he inherited revenue board and debts to commercial banks totaling N98.2 billion (principal sum) and outstanding contractual obligations of N538,601,962,421,50 billion.
According to Okowa, “Mr. Speaker, you will recall that in my inaugural address to this honourable house I disclosed that the government was beset with a Revenue Bond and indebtedness to commercial banks totaling N98.62 billion (principal sum), while outstanding contractual obligations was N538,601,962,421.50 billion. I am happy to announce to you that this exposure has been significantly reduced to about N228, 328,360,009 billion.”
He said the state government was able to achieve the feat through revalidation, repudiation, reconciliation, and value for money exercise, and promised to remain committed to sustaining the exercise through prudent awards of contracts and payment of same to key and significant projects.
The governor, who commended the legislators for their cooperation and support in reducing the deficit, noted that the synergy between legislative and the executive arm of government had been “nothing short of superlative.”
He noted that the sense of mission and unity of purpose were what governments needed to engender long-term economic development, social harmony, political stability, and general well-being of the citizenry.
He also appreciated the Civil Service Establishment, the Nigerian Labour Congress, Trade Union Congress and all workers’ unions and associations for their understanding and support.
In reviewing the 2018 budget performance from January to June, the governor said the state generated N150.9 billion representing a performance of 97.7 percent over the expected proportionate revenue receipts of N154.4 billion.
Out of the amount, N108.6 billion was received as Statutory Allocation from the Federation Account representing 122.1 percent performance over the proportionate estimate of N89 billion.
He also said N6.4 billion was recorded as receipts from Value Added Tax (VAT) out of the proportionate projected estimates of N5.4 billion, representing a budget performance of 118.8 percent for the period under review, the sum of N31.2 billion recorded as Internally Generated Revenue (IGR) out of the proportionate projected revenue of N35.8 billion, representing a budget performance of 87.3 percent in the first half of the year.
He attributed some of the factors responsible for the budget good performance to include better public engagement, expanded taxpayers’ base, and strict enforcement measures.
He explained that the expenditure profile of N66.5 billion was spent on recurrent items between January and June as against a proportionate approved budget of N73.7 billion, representing a budget performance of 90.4 percent.
On capital expenditure, he said of the approved budget of N161.6 billion in the period under review the sum of N38.6 billion was spent between January and June as against the proportionate budget figure of N80.8 billion, representing a performance of 47.8 percent.
The budget performance was not, however, the true reflection of the level of jobs accomplished/completed within the comparable period, which stands at about 50 percent, he said.
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