The Delta Government has approved the revised 2021 to 2023 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) for the state.
The State’s Commissioner for Information, Mr Charles Aniagwu in a statement on Thursday, said that the approval was given by the State Executive Council on Wednesday.
He disclosed that the council also gave a nod for a projection of N306.44 billion budget size for 2021.
Aniagwu listed other projections in the budget to include 40 dollars per barrel oil benchmark, oil production volume of 1.86 million barrel per day and inflation rate of 11.9 per cent.
He said also that the council projected gross domestic growth rate of three per cent and official exchange rate of N360 for naira to the dollar.
“The document, which is also referred to as the Economic and Fiscal Update, Fiscal Framework and Budget Policy Statement (EFU-FF-BPS) fulfils the requirements of the Fiscal Responsibility Law (2020) as amended.
“In line with international best practice and the desire of the state government to ensure appropriate financial management and resource allocation, the 2021-2023 MTEF/FSP document, is the sixth rolling edition in the series.
“The document is the basis for the preparation of the 2021 budget.
“And having been approved and adopted, it will be processed to the State House of Assembly for consideration and approval and for application in the preparation of the 2021 revenue and expenditure budget estimates of the state,” he said.
Aniagwu further said that the production of the MTEF/FSP; Economic and Fiscal Update, Fiscal Framework and Budget Policy Statement, marked the first step in the budget preparation cycle.
The commissioner explained that the council’s approval for consultants to look at what the state was getting as 13 per cent derivation was with a view to reconciling probable shortfall from the federation account.
According to him, the decision to probe into the proceeds of oil derivation was part of measures to revive the state economy following the impact of the COVID-19 pandemic.
“There are instances where the Federal Government would say that they are paying subsidies.
“On such occasions, if the total amount is N100.00, for instance, and the government pays N40.00 for subsidies, they will now base the 13 per cent derivation on N60.00 instead of the initial N100.00.
“This is what we want to reconcile, hence we are engaging the services of the consultants.
“If at the end of the day, nothing is discovered, the consultants will not be paid but if anything is realised, we will apply for refunds, and the consultants will be entitled to 11.5 per cent,” he said.
He said that the council also approved N4 billion for the construction of Ogheye Ultra Modern Concrete Floating Market in Warri North Local Government Area (LGA) of the state.