Bayelsa: Half year revenue from Federation Account falls by N27 billion

The projected revenue by Bayelsa government from the federation account and other sources for the first seven months of the current fiscal year fell by N27.07 billion.

The Bayelsa 2022 Appropriation Bill indicates that the state government has so far received a total of N137.44bn from federation account and other sources between January and July, this year 2021.

The government of Bayelsa had projected revenue of N164.52bn for the period under review in the 2021 N329.029 billion budget for the 2021 fiscal year, indicating a shortfall of N27.07bn.

Then figures are contained in the Bayelsa government’s 2022 Appropriation Bill which was laid before the Bayelsa House of Assembly by Governor Douye Diri for legislative action on Sept. 20.

Diri proposed a total expenditure of N310.71 billion in the 2022 Appropriation Bill currently before the Appropriation Committee of the state House of Assembly for consideration and passage.

Background information on the 2022 bill showed that the 2021 budget size in N137.44bn.

It is comprised of opening balance N10.78bn, statutory allocation N24.04bn, 13 per cent derivation N54. 21bn, VAT N10.25bn,

Other components of the current year budget of Bayelsa include excess crude N7.79bn, capital receipts N15.42bn, internally generated revenue N6.56bn and other sources N8.4bn.

The 2021 budget was based on a benchmark oil price of $38 per barrel, oil production capacity of 1.8 million barrels per day and exchange rate of N379 to $1.

Diri had during the Sept 20 presentation of the 2022 bill said there were revenue shortages from the federal and other projected sources and attributed the development to drop in oil prices.

According to him, several challenges are hampering the implementation of the 2021 budget, but his administration has weathered the storm to realise major achievements and implemented programmes and projects outlined in the budget.

He said: “In summary, the half-year projected revenue was N164.52bn.

“However, the actual revenue at this time as at July was N137.45bn, which is a shortfall of 16 per cent.”