Ogun State Governor Dapo Abiodun yesterday presented N351billion as the proposed Appropriation Bill for the 2022 fiscal year, before the House of Assembly.
The governor, while presenting the fiscal proposal tagged ‘Budget of Restoration’, said the task of his administration next year was to increase the pace of the implementation of its development plan as already designed and encapsulated in the ‘Building Our Future Together’ agenda.
He said that N170billion allocated to capital expenditure is to chart economic recovery growth through investment in physical projects that will create an enabling environment for investment, create employment and trigger redistribution of resources.
A breakdown of the Appropriation Bill shows that personnel cost will take N75billion, while N51billion is earmarked for overhead expenses, just as N28billion is set aside for debt service obligations to attract capital investment to the state economy.
Abiodun said N7.7billion is provided for transfers to the Stabilisation Fund to insulate and position the state towards unprecedented activities or economic shocks.
He said the budget for 2022 would seek to sustain and improve on the gains so far made in the delivery of good governance to the citizens.
The governor said the estimated N350.74 billion for 2022 will be funded through the Ogun State Internal Revenue Service (OGIRS), expected to generate N56.30billion, while other Ministries, Departments and Agencies (MDAs) are estimated to generate N96.87 billion, totalling N153.17 billion.
He added that N73.01billion is expected from statutory allocation (FAAC and VAT), while capital receipt-internal and external loans, grants and aids – are estimated at N124.56 billion.
Abiodun, who explained that 51 per cent capital expenditure has been achieved in view of the need to drive his administration’s developmental objectives, said recurrent expenditure for 2022 would gulp N154billion, while capital in an aggregate sum of N170billion would be made available for capital expenditure, which, according to him, is an increase of N10billion over the sum approved for the 2021 budget.
The governor, who noted that the state under his watch has begun moving steadily towards full recovery from the effects of the COVID-19 pandemic, said that his administration’s budget credibility, as determined by performance in 2021, was better than what Ogun had ever had in its history.
He said that his administration achieved 80 per cent IGR as at September 30, 2021.
“Judging from our Internally Generated Revenue, we were able to achieve 80 per cent IGR as at September 30. A brief detail of this indicates that of the state IGR budget size of N121, 806,876,775.63 this year, N73, 064,877,599.72 was generated as at Q3 September ending, translating to 80 per cent proportional performance, as against 44 per cent proportionate performance recorded in Q3 2020. This indicates an improved performance, owing to the digitalisation of our processes and the introduction of Central Billing System, among others.
“A further breakdown reveals that of a total estimation of N338.61billion projected as total funding, comprising expected inflows N121.81billion as Internally Generated Revenue (IGR); N58.87 billion as Statutory Allocation/ Value Added Tax and N139.53 billion as the Capital Receipts, respectively. As at September ending, Q3 2021, the actual total funding was N177.02 billion representing 70 per cent of the prorated revenue target of N253.96 billion,” Abiodun said.
The governor said despite the economic constraints, his administration has made modest progress within the available limited resources in the outgoing year by carrying out people-oriented projects such as road re-construction and rehabilitation across the three senatorial districts, health care delivery, education sector revitalization, affordable housing projects, agricultural development, digital and technological revolution, better sports development and improved welfare of workers, among others.
Pointing out that three town hall meetings were held to have inputs of the people and shape the priorities of his administration in preparing the 2022 budget, Abiodun said that “the proposed Appropriation Bill will focus on completion of existing projects; projects with revenue potential; projects consistent with priorities articulated in the state Economic Development Strategy and projects that can enhance employment generation.”
Highlighting the proposed budget, the governor announced infrastructure to take the lion’s share of N77,775b, representing 22 per cent of the total budget.
This was followed by education and health sectors with proposals of N56,071.21billion and N35,073.51billion, representing 16 per cent and 10 per cent of the total budget.
Abiodun, however, noted that N170billion allocated to capital expenditure is to chart economic recovery growth through investment in physical projects that will create an enabling environment for investment, create employment and trigger redistribution of resources.
He added that a total sum of N7.7billion is provided for transfers to the Stabilisation Fund to insulate and position the state towards unprecedented activities or economic shocks.
The governor thanked the House of Assembly for its continued collaboration and cooperation within the ambits of the separation of powers, soliciting for its unflinching support to enable the executive and the legislature deliver on their promises in the coming year.
“Let me re-emphasise that the people of Ogun State expect that the 2022 budget will contain only implementable and critical projects, which when completed, will significantly address current structural challenges of the economy, improve the business environment and accelerate economic recovery.
“I have directed all commissioners, accounting officers and heads of agencies to be personally available for budget defence,” he said.
