Ogun State Government has proposed to spend N210.21 billion for 2014 fiscal year, according to the Governor, Ibikunle Amosun.
The budget proposal, which revealed a marginal reduction of N1.57 billion from that of 2013, which stood at N211.78 billion, was christened ‘Budget of Consolidation’.
Presenting the 2014 appropriation bill before the lawmakers on Tuesday, Amosun stated that the budget is aimed at consolidating on the progress already recorded in the state within the last two years of his administration.
The governor, who explained that the leaner year 2014 budget was as a result of dwindling revenue from the Federation Account, also stated that the state encountered some challenges in the implementation of the 2013 budget which he said stood at 64 per cent as at September 30, 2013.
“We are not insulated from the wider national economic challenges. The funds from the Federation Account and Value Added Taxes (VAT) have been significantly lower than expected,” he said.
He emphasised that the budget of consolidation would significantly be serviced through an aggressive Internally Generated Revenue (IGR), which is estimated at N84.12 billion and the Federation Account allocation of N70.25 billion, with the capital receipts of N55.83 billion.
Amosun’s 2014 budget proposal, however, indicated that the sum of N92.70 billion would be spent on recurrent expenditure, while a total sum of N117.51 billion is to be expended on capital expenditure in the coming year which represents the ratio of 44.10 per cent and 55.90 per cent, respectively.
As is customary to Amosun’s administration, the sectorial breakdown of next year’s budget proposal revealed that education sector would gulp the largest allocation of N43.99 billion, representing 20.93 per cent of the total budget proposal.
Amosun told the lawmakers that the slight increase in capital allocation was to enable his administration complete all the on-going infrastructural renewal projects scattered across the state as well as embarking on other programmes that will uplift the standard of living of the citizens of the state.
The governor also explained that in spite of the tough economic environment and the pressure to scale down services, his administration has decided to maintain the size of its budget through the financial re-engineering policy he introduced.
[Independent]