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Ogun State governor, Prince Dapo Abiodun has presented the 2021 budget estimate of N339b to the State House of Assembly.
The governor projected N339b revenue and proposed same amount to be expended on the estimated 2021 budget.
Presenting the budget on Wednesday on the floor of the State House of Assembly, Abiodun said the budget titled “Budget of Recovery and Sustainability” was from an inclusive approach of town hall meetings held online with stakeholders and citizens across the three senatorial districts.
The governor disclosed that his administration is adopting a Medium-Term Expenditure Framework which will run from his second year in office till the end of the first term.
In his words, “…permit me to note that in our journey towards achieving good practice in public financial management, we have adopted, for the second year running Medium-Term Expenditure Framework (MTEF) for years 2021-2023. In addition and for the first time, we have also introduced Medium-Term Revenue Strategy (MTRS), a major shift in budget preparation process from focus on the expenditure to a greater emphasis on revenue driven model.
“… total State revenue is estimated at N339billion in 2021. This includes Internally Generated Revenues of N119billion. Statutory allocation is estimated at N59 billion while capital receipt is expected to N142 billion (i.e. Internal and External loans including Grants and Aid).
“The aggregate expenditure of N339 billion is proposed for the State Government in 2021. The proposed N339 billion expenditure comprises the recurrent of N162B and Capital of N177B. We have been able to achieve a 52 percent capital expenditure as dictated by best practices to drive our developmental objectives.”
Abiodun added that 21% of the budget will be dedicated to payment of salaries and overheads.
“Personnel cost remains the largest single item of expenditure, by 31st October 2020, it accounted for 35.5 percent of total State Government spending and is projected at 21 percent of 2021 total expenditure,” he added.
A breakdown of the proposed budget contains N73b for Statewide services, N58B for Education, N75B for Economic Affairs, N49B for General Public Services, N35B for Health, N28B for Housing & Community Amenitiesand N15B for Agriculture.
Others include N6B for Youth empowerment, N5B for Social & Environmental protection, N9B for Public Order and Safety, Recreation and N7B for Culture and Religion.