By Gabriel Enogholase
BENINâ€”Edo State government has proposed the sum of N99.25billion as its budget estimate for the 2010 fiscal year.
The budget proposal which was presented to the Edo State House of Assembly yesterday in Benin by the state governor, Comrade Adams Oshiomhole, is made up of a capital projection of N60.54 billion and a recurrent estimate of N38.71billion.
According to the governor, breakdown of the estimated budget are as follows: Internally generated evenue, N18billion or 29% of the budget; statutory allocation; N29.75 billion; excess crude and other oil revenues, N13.60 billion.
Noting that the 2010 estimate exceeded the 2009 budget by N18.66 billion or 23%, the governor explained that this was to enable his administration sustain the high capital component in its quest to re-engineer the budgetary process towards concrete development rather than recurrent spending.
â€œConsistent with the policy of shrinking recurrent expenditure to free more resources for fixed investments, a total sum of N60.54 billion or 61.2 percent of the total budget size has been earmarked for total capital expenditure. The proposed capital budget figure is N13.96billion more than the 2009 capital appropriation, representing a 30 percent increase,â€ he said.
Governor Oshiomhole told the legislators that the balance of N37.89billion would be funded through Value Added Tax (VAT) which stood at N6.6billion, grants N9.23 billion, loans and the opening balance from the current 2009 budget.
He also disclosed that his administration would explore the opportunities of the bond market in order to access long-term finances.