Prince Dapo Abiodun, the governor of Ogun State, presented the members of the State House of Assembly on Thursday with a proposed budget totaling N472,250,694,447.58 billion. The budget proposal includes N270.41 billion for capital projects, which account for the majority of the budget, and N201.84 billion for recurrent expenses for the fiscal year 2023.
The “Budget of Continued Development and Prosperity” budget included N79.47 billion for personnel expenditures, N21.12 billion for social contributions and benefits, N39.90 billion for public debt interest, and N61.35 billion for overhead expenses.
According to Abiodun, the State will give finishing off all current projects and initiatives with potential for revenue, such as those that could increase employment generation, priority attention in the upcoming fiscal year.
Projects that coincide with the seven theme areas in the Medium-Term National Development Plan 2021–2025 and other goals stated in the State Economic Development Plan and Strategy 2021–2025, he said, should also receive priority.
He listed the following as the thematic areas: regional development, social development, human capital development, public administration (governance, security, and international relations), infrastructure, public administration (governance, security, and international relations), and monitoring and evaluation.
The governor noted that the estimated total funding for the State was N472.25 billion and that a total of N210.25 billion, consisting of N90.00 billion from the State Internal Revenue Service (OGIRS) and N120.25 billion from other Ministries, Departments and Agencies (MDAs), was anticipated. This sum would allow the State to achieve an IGR to GDP ratio of 3.7%.
He also stated that the State would maintain the current Medium-Term Revenue Strategy (MTRS) to support the Medium-Term Expenditure Framework (MTEF). He added that the Federal Government was anticipated to provide a statutory allocation of N92 billion (FAAC and VAT), with capital receipts estimated at N128.37 billion, made up of loans from both domestic and foreign sources as well as grants and aids.
The governor emphasized the sectorial allocations in line with the goals of his administration, stating that the education sector would receive N66.79 billion, or 14% of the total budget, the health sector would receive N51.48 billion, or 11%, the housing and community development sector would receive N29.10 billion, or 6%, and the agricultural and industrial sectors would receive N16.48 billion, or 3% of the budget.
Infrastructural spending would account for N129.371 billion, or 27% of the overall budget, while recreation, culture, and religion would each receive N6.90 billion and social protection would receive N23.38 billion.
Following the Governor’s presentation, Speaker Olakunle Oluomo responded, promising that the State lawmakers would ensure the budget was passed on time and would continue to support the passage of laws and resolutions that would make it easier to provide the necessary facilities and other necessities of life in order to improve the quality of life for everyone.
