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DELTA STATE BUDGET 2017 PRESENTED TO THE DELTA STATE HOUSE OF ASSEMBLY BY GOVERNOR IFEANYI OKOWA (For the Records)

budgetADDRESS 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. 

  1. 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.
  1. 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.
  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. budget8
  • 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.
  1. 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)

  1. 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:
  • 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

268,179,1173

100.00

 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

100.0

BUDGET PERFORMANCE (JANUARY TO SEPTEMBER, 2016): REVENUES 

  1. 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 performanceof 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)
  1. On the other hand, the sum of seven billion, two hundredand 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%
  1. 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). 
  1. 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

 

  1. The above revenue receipts represent an aggregate decreaseof 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.
  2. 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

 

  1. 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

 

  1. The sum of one hundred and fourteenbillion, 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 ofseventy six billion, five hundred and ninety one million naira (N76.591bn), representing a budget performance of 23.60%.

 

  1. 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

  1. Mr. Speaker, distinguished Members of thisHonourable House, I now present to you the Budget Estimates for the 2017 fiscal year.
  2. 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 millionnaira (N119.001) or 43.93% for capital expenditure.

 

  1. 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

  1. 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 

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. 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

  1. 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%.
  2. 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

 

  1. 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

 

  1. 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.

 

  1. 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

 0.00

 

 

 

CAPITAL EXPENDITURE ESTIMATES 

  1. The proposed capital expenditure estimates for 2017 is one hundred and nineteen billion, one million naira (N119.001bn). The proposal isfour 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).
  1. 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

 

  1. 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

 

  1. 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.
  1. 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:

  1. 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. 
  1. A total sum of N535million is provided in the budget in the 2017 fiscal year for the Ministry of Agriculture.

Finance and Investment 

  1. 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.

 

  1. 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.” 
  1. 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. 
  1. In our continuing efforts to develop and support micro businesses, the sum ofN500million is set aside for the Micro Credit Scheme in the 2017 budget proposal. 
  1. 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 

  1. 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. 
  1. A total sum of N35.188 billion is allocated to road infrastructure in the 2017 fiscal year. 

Education

  1. 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. 
  1. 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.
  2. A total sum of N12billion is allocated to the education sub-sector for capital projects in 2017. 

Health

  1. 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. 
  1. 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. 
  1. 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. 
  1. The sum of N1.2billion is provided for the Commission’s activities during the 2017 fiscal year. 
  1. The sum of N6.3billion is also allocated to the health sector as capital expenditure for the 2017 budget year. 

Environment and Urban Renewal 

  1. 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.
  1. 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. 
  1. 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 isproposed for the Ministry of Urban Renewal in the proposed 2017 capital budget. 

  1. 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.
  1. 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. 
  1. 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. 
  1. 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. 
  1. 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

  1. 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 andN174million have been proposed for the High Court of Justice and Customary Court of Appeal, respectively, during the 2017 fiscal year. 
  1. 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. 
  1. 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. 
  1. 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)

  1. 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

  1. 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.
  2. 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.

 

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. It is on this note, Mr Speaker, that I now present the 2017 Budget Proposal as read.
  6. Thank you for your time and attention.
  7. God bless us all.

Office of the Governor

Government House

Asaba

November 2016

 

 

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