Governor Udom Emmanuel has presented a budget proposal of N426 billion for the 2016 fiscal year for Akwa Ibom State.
Mr. Emmanuel presented the budget on Tuesday to the state House of Assembly presided over by Onofiok Luke who was elected speaker on Monday.
The recurrent expenditure for the 2016 budget is N92.964 billion, while the capital expenditure is N245 billion.
The Consolidated Revenue Fund Charges is N88.036 billion.
There is a drop in the state’s budget for 2016 by N58 billion, when compared with that of 2015 which was N484 billion.
Mr. Emmanuel explained that this was due to the decline in the price of oil in the international market.
The governor said the budget proposal for 2016 is predicated on the federal government benchmark of $30 per barrel of oil and the production rate of 2 million barrels per day.
The expenditure breakdown as read by the governor showed that Road and Transports is allocated N100.244 billion which is the largest.
Health is allocated N7.419 billion, while Investment, Commerce and Industry, and Agriculture are allocated N7.986 billion and N8.071 billion respectively.
Other sectors and their allocation in the budget are: Education, N9.888billion; Rural Development, N3.258 billion; Science and Technology, N0.861billion; Land, Housing and Urban Development, N31.257 billion.
The governor said his administration would continue with the free and compulsory education initiated by the previous administration of Godswill Akpabio.
He also said the state government will complete the Science and Technology Park which was started by the Victor Attah administration.
The 2016 budget, according to Governor Emmanuel, is to be funded through the Oil Derivation Fund which is expected to pull in the highest amount of N200 billion for the budget.
Other sources for funding the budget as presented by the governor are as follows: Statutory Allocation, N35billion; Internally Generated Revenue (IGR), N35.273 billion; Value Added Tax (VAT), N12 billion; and Retained Revenue from Parastatals, N2.392 billion.