A total amount of N131,815,753,720 (One Hundred and Thirty One Billion, Eight Hundred and Fifteen Million, Seven Hundred and Fifty Three Thousand, Seven Hundred and Twenty Naira only) was Monday presented before the Abia State House of Assembly for consideration as the projected Budget outlay for 2021 fiscal year for Abia State.
Making the presentation of the budget christianed: “Budget Of Local Contents and Sustainable Development,” at hallowed chambers of Abia State House of Assembly, Governor Okezie Ikpeazu said the budget shows an increase of 22.12% from 2020 Revised Budget.
A further break down of the budget puts the Recurrent expenditure at N62,624,512,746 which is 47.51% of the total expenditure with an increase of 11.73% from the 2020 Revised Budget while the Capital expenditure of N69,191,240,974 which represents 52.49% of the total Budget expenditure and 31.52% increase from the 2020 Revised Budget.
Dr. Ikpeazu admitted that the 2021 Budget was prepared amidst a challenging global and domestic environment.
He said: “The depth and reach of the coronavirus pandemic, the resulting global economic recession, low oil prices, heightened global economic uncertainty and even security challenges facing the country have all had important implications for the State’s economic plans and operations. Nationally, real output growth declined by 6.1 percent in the second quarter of 2020. The other quarters barely fared better. I am glad to note, however, that through our collective efforts, Abia State economy performed relatively better.
We thank all Abians, for your perseverance and continued support during these difficult times. We remain unwavering in our commitment to actualize our vision of a bright future for Abians.
According to him, consideration was given to effective and efficient resource allocation and utilization while preparing this 2021–2023 Multi-year Budget, with particular consideration given to: “Reinventing the Abia spirit of industry and ingenuity. To this end, we intend to stimulate industrialization through the establishment of Cottage Industries in each of the 17 LGAs of the State.
“Proper prioritization of peoples’ needs to ensure that programmes and projects meet citizens’ demands and that their implementation guarantee value-for-money.
“Careful identification, harmonization and monitoring of revenue generating windows for effective revenue mobilization. This will be accompanied by putting appropriate measures in place to cushion revenue leakages, economic waste in resource utilization and to ensure proper resource redistribution.
“Identification and promotion of local contents in all Abia innovations and inventions, products and services for sustainable socio-economic development of the State. Our goal for 2021 is to attain sustainable development by increasing local content.
“Re-jigging Agencies of Government to ensure they are more productive, coordinated and effective in delivering services to Abians and interpreting our vision of delivering multi-sectoral growth for the State,” the Governor noted.
Reviewing the Abia State 2021 Appropriation Bill, Ikpeazu disclosed that the State currently has two major plans – a short term plan which is the 5 pillars sectors of investment as outlined by the Administration from the very beginning and the Abia State Agenda 2050 which is a long term plan covering a period of 30 years.
He explained further that the latter is at the finalization stage, being prepared with support from the Partnership Initiative for Development in the Niger Delta (PIND) and shall be forwarded to this August Assembly for review and legislation not long from now. The 2021 budget is designed to further the goals of these two plans.
“Specifically, the 2021 – 2023 Medium Term Expenditure Framework emphasizes local contents and sustainable development. This Administration is convinced that, as challenges mount on the fiscal position of the Federation and as the global environment becomes increasingly tumultuous, long term survival will have to depend on each people’s capacity to innovate, in the building of industries and in adding value. Such production and productivity will rely extensively on the capacity of people who have long term interest in the development of a particular economy for it to be sustainable, Governor Ikpeazu said.
“And no one else has more interest in the long term development of Abia than Abians themselves. As it is, the State is already blessed with an exceptionally high proportion of people who are naturally innovative, creative, resilient and dogged. We therefore see the Government’s job in this fiscal year as basically to find means of supporting them to do better what they already know how to do and are doing well.”
“Our Administration intends to support local technologies and techniques as well as leverage on the State’s areas of comparative advantage in product and service marketing. We intend to focus on already enormous number of small and medium scale enterprises operating in the State and support them both to advance in their areas of advantage and create new areas of competitive advantage. In some instances, we might need to undertake fresh but critical surveys to strengthen what we already know, identify new areas and minimize the weaknesses and threats faced by these businesses. We intend to harness their strengths and create new opportunities for them to explore for the good of all Abians.
“The above does not imply leaving out any sector, people or area. Our Administration will aim to complete all on-going capital projects. It will, however, initiate a few new ones particularly those relating to rural-urban access or feeder roads to encourage evacuation of agricultural and food products to the urban markets,” he maintained.
The Governor while noting the collaboration between the multiple arms of Government in the preparation of the budget, expressed the hope that the 7thvAssembly will pass the Bill into law early enough to enable implementation to commence by 1stJanuary 2021 and sustain the restoration of a predictable January – December fiscal year cycle in Abia State.
He commended the Speaker and members of the State Assembly for their support in piloting the State’s economy and noted the remarkable improvements that have been made to the infrastructure of the House of Assembly and the vibrancy of the various Committees, commending him for being thorough and firm.
Responding, the Speaker of Abia State House of Assembly, Rt. Hon. Chinedum Orji thanked the Governor for coming up with the early presentation of the budget estimate and the able way he has been piloting the affairs of the State.
The speaker promised to work with the members of the house to ensure the speedy passage of the 2021 Appropriation Bill into law.
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