Saturday, 9 May 2020

How C'River lost over N1 billion grant due to delay in Budget preparation

 
 
5th December, 2019 

According to information at our disposal, the current Cross River State government has caused the state to lost a grant opportunity to the tune of three million dollars ($3 million) which is over a billion Naira as at current exchange rate.


Report has it that this is due yo the State's failure to present the 2020 appropriation law as at close of work on the 31st of October 2019 which was dead line set by the Department for International Development DFID, a United Kingdom government department responsible for administering overseas aid. The body which reportedly gives a $3 million grant to support sub-national entities is said to be giving this grant in pari parsu with the Public Finance Management Law. 




According to the Public Finance Management Law, the appropriation bill for the succeeding year is expected to be presented to the State House of Assembly 'On or before the last working day of October' according to our source.


 
However, Cross River State governor, Sir Ben Ayade, Thursday, 21st November 2019 presented an appropriation bill of one trillion, one hundred billion, one hundred and sixty seven million, five hundred and seven thousand naira, nine kobo, for the 2020 fiscal year.

Tagged 'Budget of Olimpotic Meristemasis,' it has a capital expenditure of N911 billion representing 82.8 percent of the budget and a recurrent expenditure of N188 billion, representing 17.2 percent of the budget.
Ayade described the budget as one that is anchored on a belief 'in the spiritual force which is the third energy.' 


The presentation of the 2020 appropriation bill also violated the Fiscal Responsibility Act 2007 as domesticated in the state in 2011 by Gov Liyel Imoke for failing to craft the budget proposal with a Medium Term Expenditure Framework MTEF. 





This story first appeared in Negroid Haven

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