This is a reduction of N155 billion from the budget of N408 billion earlier passed by the State House of Assembly and assented to law by the immediate past governor of the state, Dr. Emmanuel Uduaghan.
The 2015 Appropriation (Amendment) bill was presented to the House in a message from the state Governor, Senator Dr. Ifeanyi Okowa, through the Speaker, Rt. Hon. Monday Igbuya, on Tuesday, September 8, 2015.
The House received the bill and read the first and second time and thereafter committed to the Ad hoc Committee headed by Hon. Erhiatake Ibori for further consideration.
At yesterday’s sitting, the Chairman of the Ad hoc Committee on the amendment of the 2015 Appropriation, Hon. Erhiatake Ibori, on behalf of the members of the committee submitted its report to the House and received following a motion moved by the Majority Leader, Hon. Tim Owhefere, and seconded by Hon. Peter Uviejitobor representing Udu Constituency.
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.
The House had on Wednesday, April 15, 2015, passed the Appropriation Bill, 2015, with N244.4 billion for capital expenditure representing 65 percent of the total budget, while N164.3 billion representing 35 percent was passed for recurrent expenditure
Hon Ibori, said that the Appropriation Amendment Act was made possible 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 such that the amended recurrent expenditure would be N162.8 and the amended capital expenditure would be N90 billion while the budget size is N253 billion.
From the 2015 Appropriation (Amendment) Bill, the House passed N162.8 billion for recurrent expenditure and N90 billion as capital expenditure for the year ending on December 2015.
Hon Ibori said the proposed re-alignment of some Vote of Charge (VOCs) was borne out of the short fall in revenue from the federal allocation and the global oil crisis.
She said the terminal period of the physical year is just a few months away and as such Governor IIfeanyi had to review and amend certain fiscal policies to accommodate the current economic situation.
The House presided by the Speaker, Hon. Monday Igbuya read the third reading on the bill and passed following a motion moved by the Majority Leader, Hon. Tim Owhefere and seconded by Hon Daniel Yingi representing Burutu 1 Constituency.