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Wednesday, November 19, 2014

OGUN STATE Budget 2015: Amosun proposes N210bn



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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