GOV OKOWA PRESENT 2017 BUDGET TO DELTA STATE HOUSE OF ASSEMBLY.

ADDRESS 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.


2.​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.



3.​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.



4.​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.



5.​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.



6.​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.



7.​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.



8.​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.
- 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.



9.​Before unveiling the details of the 2017 budget proposal, please permit me, Mr Speaker, to do a quick review of the 2016 approved budget.