23rd September, 2014
Jethro Ibileke/Benin
Governor Adams Oshiomhole of Edo state on Tuesday presented a budget estimate of N156.551 billion for the 2015 fiscal year to the state House of Assembly for consideration and approval.
The 2015 budget is N3.6 billion lower than 2014 budget of N160.1 billion. Christened “Budget of Developmental Consolidation,” Oshiomhole said it consists of N87.56 billion Capital Expenditure representing 55.77 percent of the total budget and Recurrent Expenditure of N68.99 billion which represents 44.23 percent of the budget.
According to the governor, the objectives of the budget which include completion of all on-going jobs, injection of new investments in key priority sectors of roads, education, health, water, and rural electrification; project for job creation and expanding the revenue base, creation of enabling environment for domestic and direct foreign investment and deepening of governance reforms, is expected to be financed from a total revenue estimate of N117.81 billion, Budget Support (World Bank) N13.67 billion, Gap Filling (Domestic), N17.05 billion and Grants, N8.74 billion.
“The budget is designed to achieve the consolidation of this administration’s developmental agenda and focus on key priority sector of government namely; infrastructure, Education and Health.
“We are aware that Edo state derives the bulk of its revenue from statutory allocation from the Federation account for the funding of capital and recurrent expenditures. We will continue to sustain and redouble our efforts to substantially reduce our dependence on the federation account allocation by intensifying our Internal Revenue Generation drive in the coming years.
“Accordingly, we envisage a significant boost to our IGR in 2015 while we will continue to leverage other domestic and external sources to fund projects that meet the state’s social and economic benefit cost and with positive cash flow to pay back,” Oshiomhole said.
A breakdown of the budget shows that Education got allocation of N18.1 billion, Health N9.2 billion and Environment, N18.5 billion.
Governor Oshiomhole announced that personnel cost is expected to rise by 16 percent in 2015 due to promotions and creation of 150, 000 new jobs.
While reviewing the state’s 2014 budget, Oshiomhole said the total expected revenue was N117.48 billion, but “as at June 2014, the actual revenue realized was N43.256 billion naira. In 2014, the revenue performance was affected by the drop in the allocation from the Federation account which adversely affected the revenue profile of the state.”
He however noted that despite these challenges, his administration has effectively arrested a palpable decay and dilapidation he inherited in the environmental, social, education and transportation sector. This, he said has enabled his administration to lay a solid foundation for sustainable development of the state as well as raise the bar in terms of standards both for project execution and service delivery across sectors of the economy.”
Oshiomhole expressed joy that the government has remained faithful to payments of wage obligation despite the dwindling allocation and inflow from the federal sources.
“We have equally honored our pensions and gratuity commitments. On the whole, we have sustained our policy of financial prudence and budget discipline which has kept the cost of governance within reasonable limits and ensured that more resources are channeled to Capital expenditures and welfare enhancing projects,” he said.
Responding, Speaker of the Edo State House of Assembly, Rt. Hon. Uyi Igbe said the House will expedite action on the project proposal. He noted that the governor’s reading of the project makes the first reading according to the Assembly rule. END