Governor Ibikunle Amosun yesterday proposed N210.354billion
budget for the 2015 fiscal year to the Ogun State House of Assembly.
But unlike the 2013 budget, which was N210.28billion, the proposed 2015
budget however, recorded a marginal increase of N0.074billion.
Presenting the Appropriation Bill tagged: “Budget of Continuity” to the
Assembly, Governor Amosun explained that 2015 budget was a little more than
that of the preceding year because the macro-economic outlook driven by the
global oil prices had necessitated a contraction in the national economy.
Maintaining that the state was not immune from the wider economy, Amosun
expressed confidence that the government would be able to maintain its budget
size by innovatively growing the Internally Generated Revenue.
He, however, added that it had become imperative for the government to
sustain the tempo of development in the state and continue to build on the
already laid solid foundation, especially in an election year.
He said: “2015 will no doubt mark another milestone in the annals of
our nation as the fifth general elections under the current democratic
political dispensation are scheduled to hold early in the year. This will usher
in a fresh four-year tenure at both the federal and state levels. We have strived
within the available resources to lay a solid foundation for our future
development. We have worked hard to address the huge infrastructure
deficit. We have also improved the security situation in the state and
have restored our people’s confidence in government. Indeed, we have
succeeded in creating a good and befitting image for Ogun State Government and
most importantly the good people of Ogun State. International,
multi-lateral and national agencies, that had hitherto written Ogun State off
now find in us reliable partners and are willing to assist in our developmental
efforts. We, therefore, need to sustain this tempo and continue to build on
this solid foundation. The 2015 Appropriation Bill is tagged “Budget of
Continuity.
“We remain resolutely committed to improving the socio-economic
wellbeing of our people and taking the state to an enviable pedestal. To
achieve an all-round development, we intend to undertake a review of our
programmes and strategies and re-order our priorities in line with the emerging
realities, without losing focus of the overall objectives. In anticipation of
this, it is necessary that all the achievements of our administration be firmed
up. Accordingly, the 2015 Budget will focus on successful completion of ongoing
projects, maintenance of the already completed ones and exploring other
initiatives that are crucial to the progress of the state.”
The governor further noted that the performance of the 2014 budget,
which stood at 67.17 per cent as at June this year had risen to 68.34 per cent
by the end of September, recording an improvement over the 64.2 per cent
achievement recorded within the same period in 2013.
He stated that the improvement was largely attributable to the increase
in the state’s internally generated revenue performance, which he noted
contributed the lion share of the state’s total actual revenue.
The budget breakdown consists of N92.09billion recurrent expenditure
and N118.26billion capital expenditure.
These represent a ratio of 43.78 per cent and 56.22 per cent,
respectively.
Like in the 2013 and 2014 budget proposals, the Education sector would
gulp the largest allocation of N42.565billion, representing 20 per cent
of the budget proposal.
Governor Amosun said in spite of the tough economic environment and the
pressure to scale down services, his administration had made a policy decision
to maintain the size of its budget.
He however added that the increase in capital allocation was a
reflection of his government’s commitment to sustain the growth of infrastructure
in the state while seeking efficiency in its recurrent
expenditure.
The governor further said that this year’s budget would enable his
administration to complete ongoing projects and programmes meant to
uplift the well being of the people of the state.
He noted that the budget would be financed through internally generated
revenue estimated at N99.35billion, Federation Account allocation of N53billion
and capital receipts of N58billion, totaling N210.35billion.
The breakdown of the capital expenditure shows that N10.641billion is
budgeted for agricultural production/industrialization, N34.423billion for
rural&infrastructural development/employment generation, N22.373billion for
affordable housing and urban renewal and 20.282billion for health. The
remaining sub-sectors would however gulp N80.067billion.
Of the N92.09billion recurrent expenditure, personnel costs, including
pension and gratuities as well as salaries and allowances would gulp
N60.15billion, representing 28.60 per cent, while overhead expenses
will account for N31.94billion, representing 15.18 percent.
Earlier, the Speaker of the Ogun Assembly, Suraj Adekunbi in his
welcome address disclosed that the legislature had ensured that funds
appropriated in the 2014 budget were. judiciously expended on the
projects they were meant for.
Adekunbi also said that the assembly had passed five bills covering
finance, health, community development and emergency management.
He added that five motions were passed into resolutions by the
lawmakers while an equal number of stakeholders’ fora were held in respect of
the bills passed by the assembly.
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