Gov. Hope Uzodimma has presented the 2021 budget at the Imo State House of Assembly.
The budget is titled: The Budget Of Wealth Creation, is structured to reflect the policy objectives of shared prosperity leveraged on the 3R of the NEW IMO development initiative.
Gov. Hope Uzodimma highlighted that the economic blueprint of the state is premised on a tripod vision of economic rehabilitation, reconstruction and recovery and also a roadmap for the post-covid-19 pandemic sustainable economic recovery and growth plan.
The targets of this budget is to stimulate and accelerate economic growth through SMEs.
“It is therefore imperative that individuals and corporate establishments within the state should support the policy program towards a sustainable growth of small and medium Enterprises as we will continue with policies that will guarantee increase in private-sector investment, downstream value chain addition, productivity as well as boost youth agro enterpreneurship to encourage the growth of small and medium scale enterprises in the state.”
The governor reiterated that the state is still operating a Treasury Single Account(TSA) accounting system in imo state where all revenues are domiciled and properly accounted for the use of the greater good of Imolites.
The total budget sum is N346,169,972,082. The overhead cost in the 2021 budget is N33,723,644,910 representing 52% of the total recurrent expenditure budget.
The sum of N14,120,082,285 is budgeted as personnel cost which represents 16% of the total recurrent expenditure budget.
The sum of N13,338,198,348 is provided in the budget as consolidated revenue fund charges(CRFC).
An increase in personnel cost is anticipated to accommodate the payment of the New Minimum Wage of workers in the state.
The 2021 budget is based on the following:
- FGN’S medium term expenditure framework (MTEF)
- Federal Government Fiscal strategy paper (FSP)
- Federal Government adoption of an oil price benchmark of $40 per barrel, daily oil production estimate of 1.86million barrels per day and an exchange rate of N379 per US dollar for 2021.
- National growth GDP of 3% in 2021, driven largely by Non-oil output as economic diversification accelerates and the enabling business environment improves.
It is expected that the budget will capture every sector of the state which will lead to an uncommon and unparalleled development in the state.