By Chrystal NK Chukwudebe
THUR, 17 DEC, 2020-theGBJournal- The Imo State Governor Hope Uzodimma presented the State’s 2021 budget, a total package of N346, 169, 972,082 with provision for N14.120 billion in personal cost to the State House of Assembly. The budget is tagged ”the budget of of Wealth Creation.”
The N14.120 billion provided for personal cost represents 16% of total recurrent expenditure and it is anticipated to cover for payment of the new minimum wage.
With the inclusion, the State joins the league of a handful of states that have approved the payment of the minimum wage inspite of the meagre resources of the State.
The budget which the governor says captures the global KPI for GDP growth, has its focus firmly on growth and expansion of SMEs within the State, ‘’as one of the alternatives to revenue drive.’’
The Governor said the bedrock of the budgetary preparation lies in the Federal Government’s Expenditure Framework (MTEF), the Fiscal Strategy Paper (FSP), the Federal Government’s adoption of an oil price benchmark of $40 per barrel, daily oil production estimate of 1.86 million barrels per day and exchange rate of N379/$ for 2021 as well as national growth GDP of 3% in 2021, driven largely by non-oil output as economic diversification accelerates and the enabling business environment improves.
‘’Under these assumptions, the budget is certified for optimum performance,’’ the Governor said.
52% of the budget, equivalent N33, 723,644,910 covers overhead cost, N13, 333,198,348 represents consolidated revenue fund charges.
The governor said it is expected that the budget will capture every sector of the State ‘’which will lead to an uncommon and unequalled development in the State.’’
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