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Imo’s 53.8% capital expenditure in 2020 budget excellent—Experts

Development economists have continued to hail the government of Imo State for coming up with a development masterstroke in the recently presented 2020 budget of N197.6 billion to the Imo House of Assembly by the Governor, Chief Emeka Ihedioha.

The budget proposed N91.4 billion for the recurrent expenditure and a capital expenditure of N106.2 billion which represents 53.8 per cent of the proposed budget whereas the Consolidated Revenue Fund Charges (CRFC) will remain the same with the 2019 budget provision at N16.3 billion.

In an interview, development economist and chairman of Diamond Group Ventures, Lagos, Chief Johnson Nnadiekwe, welcomed the budget, saying “The high vote for capital expenditure means that the governor has come to truly rescue and rebuild Imo.

“The budget has equally shown that Governor Ihedioha did not come to a party, but to work and return Imo to its lost glory.

Corroborating Chief Nnadiekwe, another Imo citizen based in Lagos, Chief Kinsley Uzochukwu, said the 53.8 per cent allocation to capital expenditure is in sync with the tag of the budget which is “Rebuild Imo Budget 1.”

Giving insights to the 2020 budget during the presentation in Owerri on Wednesday, Governor Ihedioha revealed that the personnel cost for Ministries reduced from N15.3 billion in 2019 to N8.9billion representing 41.5 per cent reduction, noting that the overhead cost in the proposed 2020 budget increased from N17 billion to N34.7 billion.

The Governor hinted that going forward, stringent measures would be taken to cut expenditures by Ministries, Department and Agencies (MDAs), stressing that the budget would focus on road infrastructure, improving on the ease of doing business and improving social infrastructure such as education, health services, water and sanitation.