By James Ogunnaike, Abeokuta
The Ogun State Governor, Prince Dapo Abiodun on Tuesday presented a proposed budget of N449.974 billion for year 2020 to the State House of Assembly.
Abiodun, who presented the budget christened ” Budget to Build Our Future Together” at a plenary presided over by Speaker,Rt. Olakunle Oluomo at the Assembly Complex, Oke-Mosan, said the annual fiscal estimate was targeted at reflecting the present administration’s determination to deliver on its electoral promises to the people.
Giving the breakdown of the budget, the Governor explained that N269.132 Billion representing (60.31%) was proposed for capital projects, with N180.842Billionn (39.69%) set aside for recurrent expenditure, adding that salaries and allowances stood at N83.238Billion.
He also stated that pension and gratuities would take N25.94Bn representing 18% of total expenditure with the balance of N71.659Bn resulting in 16% of the total budget earmarked for overhead cost.
He said “Our Expenditure consists of Capital Expenditure of N269.132 Billion i.e. or 60% and Recurrent Expenditure of N180.842 Billion i.e. 40%. Salaries and Allowances stand at N83.238 Billion, while Pension and Gratuities account for N25.945 Billion, which is 189% of total Expenditure and Pensions & Gratuities are 6% of total Expenditure. The balance of N71.659 Billion which accounts for 16% is set aside for the Overhead Costs”.
“The proposed Budget is to be allocated among the Five Strategic Pillars, essentially coined I.S.E.Y.A asI.S.E.Y. A as follows, infrastructure N107.964 billion, Social Welfare and Wellbeing N128.067 billion, Education N91.609 billion, Youth Empowerment, Culture and Religion N7.89 6billion, while Agriculture will gulp N21.634 billion and Others N92.804 billion
Abiodun added that Ogun State, being an emerging mega economy, will strive to attract development partner in funding, from foreign and local investors, and financial institutions, to achieve our goals, strategic pillars, and desirable outcomes in the new year”.
” Therefore, the action plan for the 2020 budget will continue with the tradition of exploring means of observing prudent financial management system, and thereby reducing cost of administration and plug waste”.
“Our focus is to continue to improve on all sectors of our dear States economy. This, we will do to further localise the Sustainable Development Goals (SDGs) to continue to create individual prosperity for the people of Ogun State”.
He added that the policy thrust for the 2020 financial year will be towards achieving No Poverty; Zero Hunger;
Good Health and Well Being; Quality Education; Gender Equality; Clean Water and Sanitation; Affordable and Clean Energy; Decent Work Economic Growth;
Industry, Innovation and Infrastructure; Reduced Inequality; Sustainable Cities and Communities; Responsible Consumption and Production; Climate Action; Life Below Water; Life on Land; Peace and Justice strong Institution; and, Partnership to Achieve the Goal
“In achieving these, we will build on the identified Pillars, particularly through the Public-Private Partnership initiative to continue to provide conducive environment for business growth and attract more investors”.
“As infrastructure will continue to be an important Pillar in discharging good governance to the people, our Administration will, in the coming year, intensify efforts towards road construction and rehabilitation across the State”.
“In this area, the Ogun State Public Works Agency and others will be better equipped both in the area of staffing and materials for effectiveness and efficiency. There will be more partnership with the Private sector for the development of our Industrial Hubs across the State”.
He added that “our Administration would embark on massive housing programmes so as to further guarantee our Administrations Infrastructural developmental strategy toward job creation and poverty alleviation. New Low CostLow-Cost Housing Schemes will cover the following areas; . Agbara, Otun Quarters at Ota, Ifo, Ijebu-Igbo Atan/Ilese area of Ijebu North East, Ikenne, Imeko-Afon, Ipokia, Abigi, Sagamu, Ilaro, Owode-Yewa, Ayetoro”.
“There is also a plan to increase the number of hostel facilities in our Higher Institutions in Ago-Iwoye, Abeokuta, Ayetoro, Ibogun, Igbesa, Ijagun, Ijebu-Igbo, Itori, and Saapade”.
On education, the governor said his government has made a provision of N91.609 billion for running cost and various capital projects in the Education sector. This includes furniture, educational materials, science and technology equipment, rehabilitation/construction of classrooms and provision of infrastructural facilities for our educational institutions.
“Our higher institution of learning will be adequately positioned to continue to provide the required training to our youth”.
“In 2020, our Administration will enhance health care delivery in the State through rehabilitating, equipping and providing adequate staffing for the general hospitals and the Olabisi Onabanjo University Teaching Hospital (OOUTH) so as to continue to serve as effective referral centres for the lower tier healthcare delivery centres. A total sum of N44.719.. billion has been set aside as the Estimates for the Health sub-sector”.
Abiodun noted that government would formulate policy thrust for the holistic actualization of the budget towards localising the Sustainable Development Goals (SDGs) through the public- private partnership initiatives, having put in place a mechanism for a workable public financial management system to eliminate leakages at ensuring efficient and judicious use of the State wealth.
According to the governor, other action plans to be put in place included full automation of the State Finance functions, strict adherence to the proposed fiscal responsibility law, instituting credit rating for the State by internationally accepted rating agencies, strengthening internal audit functions, while ensuring timely publication of audited accounts.
Earlier in his welcome address, the Speaker of the Ogun State House of Assembly, Rt. Hon Olakunle Oluomo, posited that the strides and solid foundations laid in all sectors of the State economy since inception of the present adminstration was a pointer to the massive growth and development that the residents of the State would witness under the Prince Dapo Abiodun led administration.
He assured of continuous robust relationship among the legislature and other arms of government through the enactment of more people oriented legislations, positing that the Assembly would keep to its age-long tradition by giving necessary attention to the budget proposal within the time frame, while facilitating the provision of more infrastructural facilities towards adding value to the standard of living of the people.