*To seek bond for devt project
By Kolade Larewaju
ABEOKUTA â€“ GOVERNOR Olugbenga Daniel of Ogun State yesterday presented a budget of N100.73 billion to the State House of Assembly, saying that it would be financed from the anticipated N101.98 expected income of the Government in the New Year.
The Governor, however, said about 30 percent of the expected income, amounting to N28.5 billion would be through Bond issuance.
The Bond issue had led to a protracted crisis between the Governor and the House in the last seven months with the House issuing a directive that no financial Institution should give any loan to the state government.
But in what appeared to be a volte-face, the Speaker of the House, Mr. Tunji Egbetokun yesterday said the House would â€œcritically look at the request when properly and formally made to act rightly.â€
Presenting the budget tagged â€œBudget of Realityâ€; Governor Daniel saidÂ most forward looking Governments and corporations finance their long term developmental projects with long term loans which he said were often sought from the capital market.
He said â€œmost of the turnkey projects, the world over, are financed with such loans because the immediate financial outlay of such projects are too huge to source from the total revenue generated and experience has shown that issuance of bond provides cheap money than outright loans from the financial institutions.