Gov. Dapo Abiodun of Ogun State on Wednesday presented a budget proposal of N339 billion for the 2021 fiscal year to the state House of Assembly, with N177 billion earmarked for capital expenditure.
In the budget, tagged “Budget of Recovery and Sustainability”, N162 billion was also proposed for recurrent expenditure.
The governor said that an estimated N119 billion was projected as internally-generated revenue for the state, with statutory allocation expected to be N59 billion.
He said that capital receipt, which included internal and external loans as well as grants and aids, stood at N142 billion.
Abiodun stated that personnel cost remained the largest single item of expenditure, adding as at Oct. 31, it accounted for 35.5 percent of the total government spending and was projected to be 21 percent of the 2021 total expenditure.
He said that owing to inflationary trends, the total overhead costs of ministries, departments and agencies (MDAs) and government-owned enterprises would be N50 billion in 2021, representing an increase of N11 billion over the N39 billion figure in 2020.
The governor said that the state government had made provision for the sum of N28.4 billion for debt servicing in 2021, representing an increase of N13 billion over the N15.7 billion set aside in 2020.
According to him, infrastructure will gulp N61 billion, while social welfare, which comprise health, housing, environment, physical planning and women affairs, will get N93 billion.
Education will receive N58 billion, youth empowerment will get N6 billion, agriculture N15 billion. State-wide services, general public service, public debt charges, stabilisation fund, judiciary, legislature and pensions and gratuities will get N106 billion.
Abiodun said that in efforts to attain good public financial management, the state government had adopted, for the second year running, a Medium-Term Expenditure Framework (MTEF) for 2021-2023.
He added that government had also introduced a Medium-Term Revenue Strategy (MTRS), which he described as a major shift in the budget preparation process, from a focus on the expenditure to a greater emphasis on revenue-driven model.
He said that government’s fiscal policy, between 2021 and 2023, would be geared towards improving the efficiency and effectiveness of spending and achieving better balance between capital and recurrent expenditures.
“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.
“Another consideration is the gradual fiscal consolidation in order to achieve a level of public spending that is consistent with macro-economic stability and sustainable debt,” he said.
The governor stressed that the investment focus of his administration was to create an enabling environment for business, while reducing the identified infrastructure gaps and providing fiscal stimulus to lift demands.
He said that in the 2021 budget proposal, priorities were accorded to the completion of existing projects, particularly those with revenue potential and those consistent with the priorities articulated in the state’s Economic Development Strategy.
In his speech, the Speaker, Mr Olakunle Oluomo, said that the Assembly had been able to consider and pass 33 bills, covering education, judiciary, local government and infrastructure, among others, while 23 motions were passed into resolutions.
Oluomo said that the Assembly had also mediated in issues that might have caused disharmony among the people and breach of peace in the state.
While assuring the governor and people of the state that the appropriation bill would be given accelerated passage, he expressed optimism that it would further facilitate the actualisation of the goals of the Abiodun-administration.