Ogun State Governor, Prince Dapo Abiodun on Thursday presented a total budget proposal of N472,250,694,447.58bn, consisting of N270.41bn for capital projects, which takes the lion share of the budget, while N201.84bn will go for recurrent expenditure before the members of the State House of Assembly for the 2023 fiscal year.
The budget christened, “Budget of Continued Development and Prosperity” consisted of N79.47bn for personnel costs, N21.12b for Social Contribution and Social Benefits, with N39.90bn earmarked for public debt charge and N61.35bn for overhead cost.
Abiodun explained that the State in the next financial year would accord priority attention to the completion of all ongoing projects and those with revenue potentials including the projects that could enhance employment generation.
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.