Governor Ikedi Ohakim of Imo
state, yesterday presented a budget of N134, 702,905,630 to the state
House of Assembly for the 2009 fiscal year.
Titled ‘Budget of Reality,’ the
figure is higher than last year’s budget of N90, 910,865,428 by N43,
792,040,202 or 48 per cent.
The budget, which is the second
to be presented by the governor since he came to power in 2007, is
made up of internally-generated revenue of N19,781,337,675, state
share of federation account amounting N28.501 billion, Value Added Tax
N4.436 billion, excess crude, N8.5 billion; and 13 per cent derivation
fund of N6.905 billion; as well as ecological fund, N6billion and
refund on rural electrification totaling the sum of N3billion.
The recurrent expenditure of the
budget stood at N45.486billion with personnel costs of N5.726billion,
subvention costs of N10.689billion, overhead costs of N18.801billion
and consolidated revenue fund charges of N10.268billion, while the
estimated transfer to capital fund is N26.238billion.
Explaining to the House how his
government will source fund for the execution of 2009 budget, the
governor said apart from the normal taxes and fees, which ministries,
departments and agencies collect for the government, huge sources of
anticipated fund proposed for the year’s budget include more than
N3.29 billion to be realized through the Imo Geographical Information
Services (IGIS) from the Ministry of Lands, Survey and Urban Planning;
with about N3billion anticipated interest from an envisaged deposit in
a bank of N25billion from the N40billion Bond Issue, which the
government will raise latest, first month of next year.
Also, he said that over
N830millin would be raised from sale of houses at Okporo and Nekede
housing estates, while the sum of N1billion is expected to be raised
from the state Environmental Transformation Agency (ENTRACO).
He also stated that government
anticipated grant for the state include N6billion from UNDAF 11;
N5billion from NEPAD, N2billion from MDG and N5.5billion worth of
project from NNDC, even as ISOPADEC will bring for the state the sum
of N2.5billion worth of project, while the health system development
fund, community social development project and HIV/AIDS programme will
generate the sums of N3.2billion, N3.2billion and N2.1billion,
respectively.
Sectoral allocation of capital
expenditure in the budget is as follows: N48.081 billion, for economic
and community development services, and social services, N12.831
billion; general administration, N26.290billion and government
counterpart cash contribution, N2. 013billion.
Gov Ohakim, however, said that
the fiscal year was going to be one of belt-tightening for
individuals, communities and government as a result of the global
economic meltdown with some of the belt tightening measures to be
introduced by government to include scrapping of some of government
parastatals and agencies; right sizing in the public service,
including smoking out of remaining ghost workers in the system and
suspension of government donations.
Also, the government has
suspended purchase of new vehicles, except those related to security,
while all seminars and conferences are to be centrally approved.
Ohakim also said would there
will be further 25 per cent reduction in overhead costs in 2009, while
only projects and programmes contained in the 2009 budget would be
implemented.
