No Plans to Increase Taxes, Obiano Assures As He Presents 2021 Draft Estimate

125 views | Kenechukwu Ofomah | November 3, 2020

Governor Willie Obiano on Tuesday presented the 2021 Anambra Budget Proposal of 143.7 billion naira to the State house of Assembly. 
The draft estimate is christened ‘Budget for Socio-Economic Recovery and Consolidation.’
The 2021 Draft Estimate which is over 29 billion naira higher than that of 2020 Revised Budget which was N114.9 billion, is predicated on some macro-economic assumptions including a crude oil price benchmark of 35 dollar per barrel and an average daily production of 1.86m barrels, translating to a projected annual FAAC of N46.7bn as against the 2020 revised figure of N34.4bn.
Other indices include an annual Federal Allocation (FAAC) of N46.7bn, Value Added Tax revenue projection pegged at N20.8bn annually, Internally Generated Revenue put at N36.6bn annually and Capital Receipts (including grants, other FAAC transfers, counterpart funds, aid and concessionary funding) estimated at N20.9bn.
TNC correspondent reports that while the recurrent expenditure is projected to gulp 39.5% of the total budget size, translating to N56.77bn, the remaining 60.5% which translates to N86.88bn is for capital expenditure.
Presenting the budget proposal, governor Obiano said it is based on realistic projections of all sources of revenue, and in line with the prevailing economic realities on ground, including the COVID-19 pandemic.
According to him, the Appropriation Bill provided N11.0bn for debt financing.
“This comprises of a single digit concessionary programme lending for interventions in Healthcare, Social Investments, Agriculture, Manufacturing and Youth Entrepreneurship,” he said.
A breakdown of the Capital plans showed that the bulk of the budgetary provision went to road works and infrastructure.
According to the governor, “Roads and Bridges remain a major focus area for this administration. It is therefore estimated that out of a total sum of N32bn earmarked for roads and bridges, N19.44bn will be spent on the construction of new roads as well as the rehabilitation of existing ones. We plan to complete over 50 on-going road projects in the three senatorial zones of the state, as well as construct more roads to open access to agricultural communities and boost food production in the state. The Anambra Road Maintenance Agency (ARMA) will be funded to the tune of N1.2bn for effective road rehabilitation and maintenance in the State.”
He explained that N5.8bn has been earmarked for the completion of the proposed Anambra International Airport, Umueri and N500m for the completion of the International Conference Centre, Awka while the sum of N500m has been earmarked for the development of Sports Stadia in Awka, Ekwulobia and Otuocha.  
For the Agriculture and related Sectors, Obiano said his government intends to maintain its achievements over the past seven years.
He said his government will continue to support cluster farms in the three senatorial zones of the state on comparative crop advantage basis, so as to empower the youth and women under the Commercial Agricultural Credit Scheme (CACS) and Accelerated Agricultural Development Scheme (AADS) programmes supported by the Central Bank of Nigeria. 
“Our collaboration with development partners (Central Bank of Nigeria, FADAMA and IFAD, RAAMP) to support increased farming activities and access to farmlands will be sustained in the coming year and it is hoped that the N2.5bn allocated to this sector will continually ensure that our programmes and policies are effectively implemented,” he said.
The governor also revealed that among other sectors that will receive serious attention under the budget include Education, Environment, Youth Empowerment & Creative Economy, Health, Small and Medium Enterprises Development, Water Resources and Public Utilities and Community Social Development Program.
Obiano expressed the hope that the budget will help consolidate on the 2020 budget performance especially in the areas of health, education and social investments, as well as ensure that the state remains a hub for business and a destination for new investments.
The Speaker of the State House, Mr Uche Okafor assured that the Bill will be given speedy consideration and passage to enable the people benefit from more dividends of democracy, calling on all Ministries, Departments and Agencies to prepare for bilateral discussions.

Leave a Comment