Ogun State Governor, Prince Dapo Abiodun has presented a total budget size estimated at
N339bn as the 2021 Appropriation Bill before the members of the State House of Assembly, comprising of N162bn for recurrent expenditure and N177bn for various capital projects for the next fiscal year.
The budget which was christened: ” Budget of Recovery and Sustainability”, hinged on the ISEYA mantra of the present administration and other functional classifications, allocated a sum of N119bn as internally generated revenue with N59bn expected from the federation account, while capital receipt was fixed at N142bn comprising internal and external loans including grants and aid.
According to Governor Abiodun, the total overhead costs of Ministries, Departments and Agencies was projected at N50bn for the next fiscal year, which represents an increase of N11bn from N39bn in 2020, adding that the State had made provision for the sum of N28.4bn for debt servicing in 2021, representing an increase of N13bn from N15.7bn in 2020; with more measures proposed for the sustainability of the existing enabling environment for investment and creation of employment to trigger redistribution of resources.
Giving the breakdown of the 2021 proposal, he stated that the education sector was allocated N58bn, N75bn proposed for economic affairs, with N49bn to cater for general public services, while health would gulp N35bn, with housing and community amenities having N28bn allocation.
Others included social and environmental protection which were given N5bn estimate, while N9bn was expected to take care of public order and safety, with recreation, culture and religion given N7bn and the remaining N73bn for Statewide services, including public debt charges, stabilization fund, pensions and gratuities.
The Governor explained that the State Government’s fiscal policy would be geared towards improving the effectiveness of spending and achieving a better balance between capital and recurrent expenditure.
Abiodun noted that the policy would include greater control of the wage bill; directing capital expenditure on critical infrastructure and boosting revenue receipts by identifying and plugging revenue leakages, with consideration to gradual fiscal consolidation in order to achieve a level of public spending consistent with macro-economic stability and sustainable debt.
He added that the investment focus of the State was to create an enabling environment for business, reduce the identified infrastructure gap, as well as provide fiscal stimulus to lift demand.
Recalling the adverse effect of the pandemic on the State budget performance, the governor submitted that N450B was initially approved as Year 2020 Budget, in the wake of the COVID-19 pandemic, noting that all the assumptions underlining the 2020 Budget became unrealistic and unattainable.
Earlier in his welcome address, the Speaker of the Ogun State House of Assembly, Rt. Hon. Olakunle Oluomo, intimated that a total of 33 bills and 23 resolutions covering all human endeavours, including finance, education, judiciary, local government, public works, infrastructure, community development, general administration among others with 36 public petitions were received and resolved accordingly, acknowledging the successes of the present administration in an unprecedented manner among the comity of States.
Speaker Oluomo, while expressing that the State deserved nothing less than an innovative leadership as the head of the executive arm, a fearless judiciary and vibrant legislature, reassured the readiness and commitment of his colleague-lawmakers at ensuring the speedy passage of the 2021 Appropriation Bill and other legislations that would add value to quality of life for the people.