17th November, 2022
By Adejoke Adeleye, Abeokuta
Ogun State Governor, Prince Dapo Abiodun, has presented a proposed budget of N472.25bn to the State House of Assembly for the 2023 fiscal year.
Abiodun, while presenting that budget tagged “Budget of Continued Development and Prosperity” to the lawmakers and stakeholders in the state said the budget was important than other years’ budget since the inception of his Administration because it is a transition budget.
He added that the budget would transit the current phase of the state to another phase in the effort to build the future of the state.
“Let me note that this budget of year 2023 is as important, if not more important than the other years since the inception of our Administration. This is because it is a transition budget. This budget will take us from the current phase into another phase of our “Building Our Future Together.” he said.
“This budget marks the last leg of our first term and by the Grace of Almighty God the first leg of our second term which will be made possible by the support and re-election by the good people of Ogun State.
“The budget consists 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,” he said
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 are: 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.
Pointing out that the total State’s funding was estimated at N472.25 billion, the governor added that a total of N210.25bn, 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.
Earlier in his opening remarks, the Speaker, Rt. Hon. Olakunle Oluomo, said that the last three years of the present administration in the State had witnessed unprecedented development in all areas of human endeavour, which was a testimony of Governor Abiodun’s lofty dream for the State.