Abiodun presents N472.25bn 2023 budget proposal to Ogun Assembly

By Kolawole Olayinka, Abeokuta

Governor Dapo Abiodun of Ogun State on Thursday presented a budget proposal of N472.25 billion to the state House of Assembly for the 2023 fiscal year.

The budget is made up of N270.41billion for capital projects, taking the lion share, while N201.84 billion will go for recurrent expenditure.

Governor Abiodun, who read the 2023 appropriation bill christened; ‘budget of continued development and prosperity,’ before the state legislators led by Rt Hon. Speaker Kunle Oluomo, said N79.47 billion is for personnel cost while social contribution and social benefits will gulp N21.12 billion.

“A total expenditure of N472.25 billion is proposed for the state government in 2023. The proposed expenditure comprises of N201.84 billion as recurrent and N270.41 billion as capital with the highlights below:

Personnel Costs of N79.47 billion; Social Contribution and Social Benefits N21.12 billion; Public Debt Charge of N39.90 billon; Overhead Cost of N61.35 billon; Capital Expenditure of N270.41 billion.”

Abiodun explained that the state in the next financial year would accord priority attention to the completion of all ongoing projects and those with revenue potentials, including projects that could enhance employment generation.

He noted that others to be prioritized are projects consistent with priorities articulated in the State Economic Development Plan and Strategy 2021-2025 and others that align with the seven thematic areas contained in the Medium-Term National Development Plan 2021-2025.

According to him, the thematic areas were: economic growth and development, infrastructure, public administration (governance, security, and international relations), human capital development, social development, regional development, as well as plan implementation, communication, financing, Monitoring and Evaluation.

Of the estimated N472.25 billion budget, the governor said N210.25billion was expected to be generated by the State Internal Revenue Service (OGIRS) in addition to N120.25 billion expected from other Ministries, Departments and Agencies (MDAs), which would enable the state achieve an IGR to GDP ratio of 3.7%.

He further affirmed that the state would sustain the existing Medium-Term Revenue Strategy (MTRS) to drive the Medium-Term Expenditure Framework (MTEF), saying N92 billionn was being expected as statutory allocation (FAAC and VAT) from the Federal Government, with capital receipts put at N128.37 billion comprising of internal and external loans as well as grants and aids.

Highlighting the sectorial allocations in line with the vision of his administration, the governor said that N66.79 billion was being allocated for education sector, representing 14%, while N51.48 billion would cater for the health sector representing 11%, with the housing and community development sector sharing N29.10 billion amounting to 6%, just as N16.48 billion was voted for agriculture and industry which represents 3 % of the total budget.

He added that infrastructure would gulp N129.371 billion representing 27% of the total budget, with recreation, culture and religion to share N6.90 billion, just as N23.38 billion would be spent on social protection.

Earlier in his opening remarks, Rt. Hon. Olakunle Oluomo, said that the last three years of the present administration in the state has witnessed unprecedented development in all areas of human endeavour, which was a testimony of Governor Abiodun’s lofty dream for the state.

The Speaker noted that the Ninth Assembly had been maintaining cordial and peaceful relationship with the Executive Arm of government, which had reflected in the level of achievements recorded by the present administration since its inception in 2019, commending the governor for approving the release of fund for this year’s Constituency Projects in the state.

He added that after the tenders board had completed the necessary processes with the State Bureau of Public Procurement, the teeming constituents would start witnessing the commencement of the projects across the state.

The budget presentation had in attendance the former Military Administrators- Col. Daniel Akintonde, Oladehinde Joseph and Navy Captain Rasheed Raji, the former Deputy Governor, Yetunde Onanuga and Salimat Badru, former Speakers Suraju Adekunbi and Tunji Egbetokun, Head of Service, Dr. Nafiu Aigoro, the Chairman, Governor Advisory Council, Chief Olu Ogunboyejo, members of the State Executive Council.

Also in attendance were traditional rulers, including the Paramount Ruler of Remoland, Oba Babatunde Ajayi, the representatives of Alake and Paramount Ruler of Egbaland, and that of Olu and Paramount Ruler of Yewa land, the body of Permanent Secretaries, captains of industry and party stalwarts amongst others.