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Group condemns N126bn extra-budgetary expenses in Delta

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A civil society organisation, CSO, Policy Alert, working to promote fiscal and ecological justice in the Niger Delta region, has flagged an alleged extra-budgetary spending by the government of Delta State, amounting to N126 billion in the first three quarters of 2023.

The CSO raised the alarm in a statement signed by its Programme Officer, Fiscal Reforms and Anti-Corruption, Faith Paulinus, copies of which were made available to journalists in Warri on Tuesday.

The statement observed that “between January and September 2023, the Delta State Government House and Protocol and 25 other Ministries, Departments, and Agencies, MDAs, engaged in extra-budgetary expending amounting to N126 billion.”

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Policy Alert informed that the red flags were spotted during a review of Delta State Third Quarter Budget Performance Report, 2023. It also stated that some of the spending had exceeded 200 percent of what was budgeted.

The statement partly reads, “Government House and Protocol had a budget of N22.38 billion, but between January and September 2023 and with a full quarter left to the end of the fiscal year, the office had already spent N46.67billion, which is 208.6 per cent of what was budgeted.”

Policy Alert listed the MDAs caught in the web of extra-budgetary spending to include: the Delta State Liaison Office, Abuja; Delta State Liaison Office, Lagos; the Ministry of Finance; the Office of the Accountant General; Delta State Council for Arts and Culture; Delta State Water Regulatory Commission; the Ministry of Urban Renewal; Judicial Service Commission, and the Ministry of Justice.

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Others are: the Ministry of Secondary Education; Delta State University of Science and Technology, Ozoro; Delta State Polytechnic, Oghara; University of Delta, Agbor; Delta State Library Board; the Ministry of Health; Traditional Medicine Board; School of Nursing, Warri; Delta State Primary Health Care Development Agency; Delta State School of Health Technology, Ughelli; Contributory Health Commission; Delta State Environmental Protection Agency; Secretariat of Traditional Council; Delta State Broadcast Service; Special Projects (Political Appointees); and Tractor Hire Agency.

Noting that extra-budgetary spending is a violation of the Fiscal Responsibility Law of Delta State, Policy Alert called on the state House of Assembly to immediately investigate the breach of the law and take necessary action to hold the executive accountable.

It also called attention to what it described as “the unwholesome trend of supplementary budgeting in the state.”

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It said, “We are aware that the House of Assembly recently approved a second 2023 supplementary budget of N167 billion in addition to an earlier N71 billion 2023 supplementary budget signed into law in the last days of the previous administration.

“This indicates poor fiscal discipline and could turn the state’s budget into a mere ritual, rather than a tool for planning and accountability.”

Policy Alert, however, applauded the government of Delta State for prioritizing capital expenditure over recurrent spending in the last three quarters.

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It enthused, “We have observed Delta State as the only state that has prioritized capital expenditure over recurrent among states that have published their Third Quarter Budget Performance Report. The report shows that within the three quarters, recurrent expenditure had N261.33 billion, while capital had N274.45 billion. In the third quarter alone, recurrent expenditure had N54.69 billion in releases, while capital spending had N79.35 billion. This is commendable.

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