SEGUN AYINDE, ABEOKUTA
Ogun State Governor, Prince Dapo Abiodun, has presented a budget proposal of N339 billion for the 2021 fiscal year to the Ogun State House of Assembly for approval.
The budget, tagged, “Budget of Recovery and Sustainability” is the second full year budget to be presented by the governor, which is N110.974 billion less than his budget proposal of N449.974 billion for the year 2020.
Abiodun said that the 2021 Appropriation Bill highlights the key sectors and budgetary allocations for rapid development of the state as it gradually reduced the identified infrastructure gap and fiscal stimulus for economic recovery
“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 said that State Medium Term Sector Strategy (MTSS) approach, based on a modified zero-based budgeting framework, was in place to provide ‘a profiled budget, stating the various expenditure headings and cost allocated over the three years.’
Abiodun, while stating that the 2021 budget is meant to address the challenges of COVID-19 pandemic, #EndSARS protests, general feeling of disenchantment in the polity, and the socio-economic yearnings of the people of Ogun for good governance, said that 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 would be achieved.
According to the governor, the budget comprises a recurrent expenditure of N162 billion (48 per cent of the total budget) and a Capital expenditure of N177 billion (52 per cent) as dictated by best practices to drive his administration’s developmental objectives
He said that a sum of N61billion goes for infrastructure, as N93billion stands for Social welfare and well-being, including Health, Housing, Environment, Physical Planning, Women Affairs etc, while N58 billion goes to Education and 6billion is for Youth empowerment, as Agriculture receives N15 billion and N106 billion for Enablers.
Abiodun said that the state would also set aside N12 billion for a Stabilisation Fund and N10 billion for Public Debt Charges, while the Ogun State Internal Revenue Service (OGIRS) will generate an estimated N75 billion and other IGR, while Ministries, Department and Agencies (MDAs) will generate an estimated N44 billion, totalling N119 billion.
He noted that statutory allocation will provide estimates of N59 billion while capital receipt, internal and external loans, including grants and aid, is estimated at N142 billion.
The governor stressed that since oil revenue has continued to reduce, thus affecting statutory allocation, 2021 internally generated revenue of the State projected at N119billion will complement the projected statutory allocation of the proposed budget, 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.’
He, therefore restated 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 said