Omon-Julius Onabu in Asaba
2015 estimated budget receipts drop by 50%
The Delta State 2015 budget estimates are to be reviewed downwards drastically in the light of the current dwindling revenue to the federating states from the Federation Account, which has made projections in the 2015 budgets at all government levels unrealistic.
Governor Ifeanyi Okowa, who stated this on Thursday while addressing the plenary of the Delta State House of Assembly, explained that the review of the budget estimates was necessitated by the fact that the current state of Delta’s projected finances has made the 2015 budget unrealistic.
The current adverse financial situation has reduced the expected revenue to the state by about 50 per cent, he revealed.
Okowa disclosed that the reality of the very gloomy financial situation of the state vis-a-vis this year’s projected budget estimates shortly after assuming office on May 29, 2015, dawned after the briefing by the state’s finance ministry authorities.
He noted that Delta State’s monthly allocation from the Federation Account has plummeted to an all-time low from over N20 billion to just over N8 billion.
The new lean financial status of the state government is further stretched by the huge debt profile of the state, which includes funds to service various long term loans and bonds as well as numerous contractual obligations running into over N600 billion.
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