Asaba – Delta state government is owning its 50,000 workers and pensioners over N9.236 billion due to shot fall in the revenue accruing to the state from the Federal allocation account,the commissioner for Finance, Mr David Edevbie has said.
Mr Edevbie also revealed that the labour union and co-operative are inclusive in the debt, saying that it has been difficult to meet their full payment despite the devised means of ensuring that they are paid promptly.
The finance commissioner who disclosed this yesterday in Asaba at the ministerial press briefing said the decline in crude oil price, vandalization of oil pipeline and flow station in the state by the militants was also responsible for non payment of their money as at when due.
He regretted that the state that was once flowering in milk and honey and placed second in 13 percent mineral revenue receipts has dropped to fourth position after Akwa Ibom, Bayelsa, Rivers states respectively.
Mr Edevbie further explained that the state domestic debt as at the end of September this year was N237.80 billion and one of the highest in the federation.
According to him, debt owned to local contractors alone was in excess of N100 billion while others relate to borrowing from commercial banks, the second Delta state bond, bail out assistance from the federal government, pensions and gratuity arrears.
The commissioner also informed that the aggregate revenue betweent May 2015 and September this year was N192.50 billion compared to the budgeted N280.71 billion
He explained that the recurrent expenditure was fully in line with the budget, but the overall decline in total revenue has adversely affected spending on capital projects
The commissioner said the state is willing to extend credit facility of N708 million through Universal Investment Development Company (UIDC) to 2,283 government employees to enhance their welfare, relaunch trade finance schemes worth N25 million for market women in Asaba, Agbor and Warri and the provision N587 million mortgage via Delta Mortgage Finance Limited to support mass urban housing schemes across the state.
