Ogun State Governor, Prince Dapo Abiodun, on Tuesday, presented a budget proposal of N339billion for the 2021 fiscal year tagged, ‘Budget of Recovery and Sustainability” to the Ogun State House of Assembly for approval.
Penpushing reports that, the budget which is the second full year budget to be presented by the Governor is N110.974bn different from his 2020 proposal of N449.974 billion, while speaking at the assembly complex; Abiodun said the 2021 Appropriation Bill highlights the key sectors and budgetary allocations for rapid development of the State.
“The investment focus of this Government is to gradually reduce the identified infrastructure gap as well as provide fiscal stimulus to lift demand and help the state in its economic recovery process”, he said.
The Governor noted that in achieving this, the State Medium Term Sector Strategy (MTSS) approach based on a modified zero-based budgeting framework was emplaced to provide “a profiled budget stating the various expenditure headings and cost allocated over the three years”
‘The MTSS includes the approved programmes upon which expected level of completion over the period is monitored…in allocating envelopes to different Sectors and MDAs’, Abiodun emphasized.
Penpushing further reports that he noted that priority has been given to completion of existing projects, projects with revenue potential, projects consistent with priorities articulated in the State Economic Development Strategy and to projects that can enhance employment generation.
The Governor stressed that the Budget is meant to address the coronavirus pandemic, the police brutality protests, the general feeling of disenchantment in the polity, the socio-economic yearnings of the Ogun State people for good governance, as well as the stringent calls in all societal spheres for a more representative democracy that speaks to the issues of economic growth, consistent progress and equitable quality of life.
The budget comprises recurrent expenditure of N162bn (48 per cent of the total budget) and a Capital expenditure of N177 billion (52 per cent) “as dictated by best practices to drive our developmental objectives.”
Penpushing also reports that, highlights of the budget include: Infrastructure, N61B; Social welfare and wellbeing: N93B (includes Health, Housing, Environment, Physical Planning, Women Affairs, etc); Education, N58B; Youth empowerment, N6B; Agriculture, N15B and Enablers N106B
The Governor said the State will also set aside N12 billion for Stabilisation Fund and N10billion for Public Debt Charges,adding that the Ogun State Internal Revenue Service, OGIRS, will generate an estimated N75 billion and other IGR from Ministries, Department and Agencies (MDAs) would generate an estimated N44billion totaling N119billion.
Penpushing reports that, Abiodun added that Statutory allocation will provide estimates of N59 billion while capital receipt is estimated at N142 billion (i.e. Internal and External loans including Grants and Aid).
“Since oil revenue has continued to reduce thus affecting statutory allocation, the 2021 internally generated revenue of the state projected atN119billion will complement the projected statutory allocation of the proposed budget”, he said, noting that the 2021 Appropriation Bill has been modified to include budgeted revenues, no matter how small, for each MDA, to focus on internal revenue generation.
The Governor reiterated his administration’s firm commitment to a legacy of hope, financial stability, and fiscal prudence, as he promised a drastic reduction in the discriminatory impact of poverty by strengthening all regulatory and institutional frameworks that are crucial to the preservation of the state’s rich cultural, financial, and historical heritage.
“We have resolved to keep exploring Public-Private Partnership strategies in the provision of infrastructure, social services, and the conversion of our challenges to opportunities within the context,” he stated.
Penpushing further reports that,he reeled out his record of achievement as encapsulated in the ISEYA acronym suggesting a great leap in Infrastructural development (roads, portable water and housing): social welfare and wellbeing (healthcare, women empowerment and grassroots development); education; youth empowerment and agriculture and food security.
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