A budget estimate of N320.35 billion for the fiscal year 2023 was presented to the 10-member State House of Assembly on Wednesday by Edo State Governor Godwin Obaseki for review and approval.
The budgetary estimate, dubbed the Budget of Reliance and Transformation, consists of 60% capital expenditures (N192 billion) and 40% recurring expenditures (N127 billion).
The budget for 2022 was N222 billion; this one is about 69.2 percent more expensive. It is anticipated that a large portion of the funding will come from increased internal revenue generation and revenue from the sale of crude oil.
The budget, in the Governor’s opinion, is built on the premise of inflation but will stimulate the state’s economy.
He said: “The revenue estimate for the budget is based on $70 per barrel crude oil bench mark and an average production of 1.69 million daily production per day as well as an increase in the Internally Generated Revenue of N60. 4 billion due to the reforms undertaken in tax collection and land management activities.
“To this end, we expect that the capital/recurrent ration would be 60 percent capital and 40 percent recurrent.
“The budget estimate consist of 143 billion statutory allocation made up of value added tax of N42.1 billion, capital receipt N41 billion, IGR of N60.4 billion and N4 billion from grant and other sources.
“The balance would be source from development partners, and financial institutions among others.”
Obaseki informed the lawmakers that the budget was informed by the need to build a resilient economy and engender growth in the State.
Road and transport sector carries the lion share of the budget (N54.9 billion), followed by education (N32.9 billion).
For other sectors: Healthcare (N30.2 billion), Public Buildings (N20.5 billion), Electricity and Energy (N7.2 billion), were budgeted.
The very critical Agricultural sector, however, received a paltry N5.4 billion.
In his remark, the Speaker of the House, Mr. Marcus Onobun, assured that the budget would be given timely consideration to sustain the economic growth and development of the state.
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