Prince Dapo Abiodun, the governor of Ogun State, presented the members of the State House of Assembly on Thursday with a proposed budget totaling N472,250,694,447.58 billion. The budget proposal includes N270.41 billion for capital projects, which account for the majority of the budget, and N201.84 billion for recurrent expenses for the fiscal year 2023.
The “Budget of Continued Development and Prosperity” budget included N79.47 billion for personnel expenditures, N21.12 billion for social contributions and benefits, N39.90 billion for public debt interest, and N61.35 billion for overhead expenses.
According to Abiodun, the State will give finishing off all current projects and initiatives with potential for revenue, such as those that could increase employment generation, priority attention in the upcoming fiscal year.
He noted that others to be prioritized are projects consistent with priorities articulated in the State Economic Development Plan and Strategy 2021-2025 and others that align with the seven thematic areas contained in the Medium-Term National Development Plan 2021-2025.
According to him, the thematic areas were: economic growth and development, infrastructure, public administration (governance, security, and international relations), human capital development, social development, regional development, as well as plan implementation, communication, financing, Monitoring and Evaluation.
While pointing out that the total State’s funding was estimated at N472.25 billion, the governor added that a total of 210.25bn, comprising of N90.00billion was expected to be generated by the State Internal Revenue Service (OGIRS) in addition to N120.25b expected from other Ministries, Departments and Agencies (MDAs), which would enable the State achieve an IGR to GDP ratio of 3.7%.
He further affirmed that the State would sustain the existing Medium-Term Revenue Strategy (MTRS) to drive the Medium-Term Expenditure Framework (MTEF), saying N92bn was being expected as statutory allocation (FAAC and VAT) from the Federal Government, with capital receipts put at N128.37b comprising of internal and external loans as well as grants and aids.
Highlighting the sectorial allocations in line with the vision of his administration, the governor said that N66.79bn was being allocated for education sector, representing 14%, while N51.48bn would cater for the health sector representing 11%, with the housing and community development sector sharing N29.10bn amounting to 6%, just as N16.48bn was voted for agriculture and industry which represents 3 % of the total budget.
He added that infrastructure would gulp N129.371bn representing 27% of the total budget, with recreation, culture and religion to share N6.90bn, just as N23.38bn would be spent on social protection.
Responding shortly after the Governor’s presentation, Speaker Olakunle Oluomo promised that the State lawmakers would ensure the timely passage of the budget and sustain the passage of laws and resolutions that would facilitate the provision of the needed facilities and other necessities of life towards adding values to the quality of lives of all the people.
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