Cross River State House of Assembly has approved Governor Ben Ayade’s 2016 budget of deep vision, cutting it by over 13 per cent.
Gov. Ayade had proposed N350bn for the 2016 fiscal year, but the legislature has reviewed it to N303.1bn.
The approval follows the adoption of the report of the House Committee on Finance and Appropriation, presented by Hon. Regina Anyogo, the Chairman.
House Leader, Moses Ucheche, moved the motion for adoption of the committee’s report, while Simon Ikori, the deputy leader, seconded it.
The report agrees with much of Ayade’s proposals, but differed with some of the projected revenue sources, particularly the accruals from the federation account which has shrunk due to a crash in crude oil price.
Though the report praised the governor for his vision to expand government, it urged him to “shed some recurrent expenditure”, due to current fiscal realities.
It observed that a big part of expected revenue would be difficult to actualise since it is tied to Foreign Direct Investment (FDI), access to which the report describes as “too cumbersome and may not be feasible for some of the projects in the fiscal year.”
It instead recommends, among others, that “actual revenue and capital receipts” should serve “as a baseline for actual expenditure.”
The Speaker of the house, Rt. Hon. John Gaul-Lebo asked the clerk to produce and transmit copies of the law to the governor for accent, and to distribute same to members and relevant MDAs.
Lebo said that there was a need for the state government to put together a Medium Term Expenditure Framework (MTEF) for the state which is due to expire in December 2016.