Ogun State Governor, Prince Dapo Abiodun presenting the 2022 Appropriation Bill to the state House of Assembly yesterday (Tuesday).
Infrastructure took a whooping sum of N77,775b, representing 22% of the total budget of N350.74bn proposed as the appropriation bill for the year 2022 by the Ogun State Governor, Prince Dapo Abiodun to the state House of Assembly yesterday (Tuesday).
Presenting the appropriation bill which he called "Budget of Restoration', the governor noted that his government did a thorough homework on the financial document as three town hall meetings were held to have inputs of the people of the state in the budget.
He assured that the proposed budget would focus on completion of existing projects and these would be projects with revenue potentials; projects consistent with priorities articulated in the State Economic Development Strategy and projects that can enhance employment generation.
Prince Abiodun said that the estimated N350.74 billion for the year 2022 would be funded through the Ogun State Internal Revenue Service (OGIRS) which is expected to generate N56.30b, while other Ministries, Departments and Agencies (MDAs) estimated to generate N96.87 billion totaling N153.17 billion.
He added that N73.01b is expected from statutory allocation (FAAC and VAT), while capital receipt - internal and external loans, grants and aids - is estimated at N124.56 billion.
The governor said the main task of his administration next year is to increase the pace of the implementation of its development plan as already designed and encapsulated in the 'Building Our Future Together' agenda as the budget for 2022 will also seek to sustain and improve on the gains so far made in the delivery of good governance to the people of the State.
Governor Abiodun noted that the state under his watch, has begun moving very steadily towards full recovery from the effects of the COVID-19 pandemic which he said made achievement of revenue targets impossible in the last two years.
He said his administration's budget credibility as determined by performance in year 2021 was better than what Ogun has ever had in its history while noting that his administration was able to achieve 80% IGR as of September 30, 2021.
He noted that "Judging from our Internally Generated Revenue, we were able to achieve 80% IGR as at 30th September of this year. A brief detail of this, indicates that out of the State IGR Budget size of N121, 806,876,775.63 this year, a sum of N73, 064,877,599.72 was generated as at Q3 September ending, translating to 80% proportional performance, as against 44% proportionate performance recorded in Q3 2020".
This, he said, indicated an improved performance, owing to the digitalisation of processes and the introduction of Central Billing System, amongst others.
"A further break down reveals that, out of a total estimation of N338.61Billion projected as total funding, comprising of expected inflows N121.81B as IGR; N58.87 Billion as Statutory Allocation/ Value Added Tax and N139.53 Billion as the Capital Receipts, respectively. As at September ending, Q3 2021, the actual total funding was N177.02 billion representing 70% of the prorated revenue target of N253.96 billion", he stated.
The governor said that despite the economic constraints, his administration has made modest progress within the available limited resources in the outgoing year by carrying out people-oriented projects such as road re-construction and rehabilitation across the three senatorial Districts of the state; health care delivery; education sector revitalization; affordable housing projects; agricultural development; digital and technological revolution; better sports development; and, improved welfare of workers, among others.
He explained that recurrent expenditure for 2022 will gulp N154b as an aggregate sum of N170b will made available for capital expenditure, which according to him, is an increase of N10b over the sum approved for the 2021 budget.
This was followed by education and health sectors with proposals of N56,071.21b and N35,073.51b, representing 16% and 10% of the total budget, respectively.
Abiodun, however, noted that N170billion allocated to capital expenditure is to chart economic recovery growth through investment in physical projects that will create enabling environment for investment, create employment and trigger redistribution of resources.
He added that the total sum of N7.7b is provided for transfers to the Stabilization
Fund to insulate and position the state towards unprecedented activities or economic shocks.
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