Gov. Dapo Abiodun of Ogun on Wednesday presented a budget proposal of N339billion for the 2021 fiscal year to the State House of Assembly with N177 billion earmarked for capital expenditure.
reports that the budget christened, “Budget of Recovery and Sustainability ” also has N162billion proposed for recurrent expenditure.
The governor said that an estimated N119billion was projected as internally generated revenue for the state, while statutory allocation was expected to be N59billion.
He stated that capital receipt which included internal and external loans including grants and aids stood at N142billion The governor opined that personnel cost remained the largest single item of expenditure, saying that by October 31, 2020 , it accounted for 35.5 percent of total state government spending and was projected at 21 per cent of 2021 total expenditure.
He said that consequent on the inflationary trend, the total overhead costs of MDAs and government owned enterprises was projected at N50billion in 2021, which represented an increase of N11billion from N39billion in 2020.
The governor explained that the state government had made provision for the sum of N28.4 billion for debt servicing in 2021, representing an increase of N13billion from N15.7billion in 2020.
According to the governor, Infrastructure would gulp N61billion, social welfare and wellbeing which comprised health, housing, environment, physical planning and women affairs stood at N93billion.
According to Abiodun, education will receive N58billion, youth empowerment N6billion while N15billion was earmarked for agriculture and N106billion would go to Enablers which comprised statewide services, general public service, public debt charges, stabilization fund, judiciary, legislature, pensions and gratuities.
Abiodun said that towards achieving good practice in public financial management, the state government had adopted, for the second year running Medium-Term Expenditure Framework (MTEF) for years 2021-2023.
He added that the government had also introduced Medium-Term Revenue Strategy (MTRS), which was a major shift in budget preparation process from focus on the expenditure to a greater emphasis on revenue driven model.
The governor said that the period of years 2021 to 2023, the state government’s fiscal policy would be geared towards improving the efficiency and effectiveness of spending and achieving a better balance between capital and recurrent expenditure.
“This will include greater control of the wage bill, directing capital expenditure on critical infrastructure and boosting revenue receipts by identifying and plugging revenue leakages.
“Other consideration is gradual fiscal consolidation in order to achieve a level of public spending consistent with macro-economic stability and sustainable debt,” he said.
He added that the investment focus of this administration was to create an enabling environment for business, reduce the identified infrastructure gap and provide fiscal stimulus to lift demand.
The governor hinted that in the 2021 budget proposal, priorities were accorded completion of existing projects, projects with revenue potential, projects consistent with priorities articulated in the State Economic Development Strategy.
In his speech, Mr Olakunle Oluomo , the Speaker of the state assembly said the House had been able to considered and passed into laws 33 bills covering Education, Judiciary, Local Government and Infrastructure among others while 23 motions were passed into resolutions.
Oluomo explained that the assembly had also mediated on issues that might caused disharmony among the people and breach in the state.
The speaker assured the governor and the people of the state on the quick passage of the bill with emphasis that it would further deliver on the goal of the administration.