The Government of Bayelsa State has lamented a steady decline in revenues accruing from the federation account while announcing its income and expenditure profile for the months of August, September and October 2020.
Presenting a breakdown of the figures in Yenagoa on Monday, the Commissioner for Finance, Maxwell Ebibai, disclosed that the state received a gross inflow of N12.8 billion, N10.285 billion and N10.2 billion for August, September and October respectively making a total of N33.285 billion.
While there was marginal increase in Internally Generated Revenue (IGR), other expenditures for gratuity to pensioners and salaries to civil servants have constituted a huge drain in financial resources as the government had to source for additional N2.0 billion in August to meet up its obligations.
In the same period, deductions at source stood at N4.859 billion comprising N1.007 billion for August, N1.952 billion for September and N1.9 billion for October an indication that deductions have been increasing while revenues are dropping.
Ebibai pointed out that Governor Douye Diri had been consistent in the payment of gratuities to pensioners despite the state’s financial constraints and assured that it would sustain the payment until the backlog is cleared which has increased recurrent expenditure in recent months.
Due to the worsening financial situation, the governor sought the approval of the state House of Assembly to access a total of N17 billion to revamp the Oil Palm Estate, N4.0 billion counterpart funding for SDGs and N3.0 to shore up funds for projects.
With a low monthly IGR profile, Governor Diri is looking at investments in the agricultural sector to improve the economic situation in order to usher in his prosperity agenda.