Draft Estimate Is a Deficit Budget- Commissioner

In News 2019-10-04 17:46:53
Draft Estimate Is a Deficit Budget- Commissioner
Draft Estimate Is a Deficit Budget- Commissioner


The Commissioner for Economic Planning and Budget in Anambra state, Mark Okoye says the state’s 2020 draft estimate is a deficit budget with mechanics that can erase the need to borrow when the assumptions kick in.


Okoye revealed this while speaking during a post-budget briefing in Awka, the Anambra State capital.


According to the Commissioner, the need to be conservative with the hope to attain liquidity was a major viewpoint for this year.


“Our view is that we will be a bit conservative and this is in line with what we’ve always done for the last three, four years in the state,” Okoye said.


“The whole idea of being conservative is such that we have some savings at the end of the year. What that then means is that we have some excess liquidity that we can channel to critical sectors and emergency needs should they arise in the year. It’s a way of just prudently approaching your budget and your fiscal system in the state.”


The draft estimate presented to the state House of Assembly last week by Governor Willie Obiano puts the budgeted revenue at N120bn while the budgeted expenditure is N137bn, creating a deficit of N16bn.


The Commissioner also stressed the state was very conservative in the assumptions it based the estimate on so as to achieve a realistic budget.