Ondo State Governor, Mr. Rotimi Akeredolu, on Tuesday, presented the budget proposal of N191.638 billion for 2022 fiscal year to the Ondo State House of Assembly, which was tagged “Budget of Economic Re-Engineering.”
The budget which was transmitted to the House of Assembly by the Commissioner for Finance, Mr. Wale Akinterinwa on behalf of Akeredolu said the budget is premised on the theme ‘Industrialisation for Inclusive Growth, Empowerment and Wealth Creation’
According to the governor, the budget which represents an increase of 9.59 per cent over the 2021 budget was based on the world’s economy which is gradually but steadily emerging from the debilitating effects of the COVID-19 pandemic.
Akeredolu said “the policy thrust and priorities of government in the next fiscal year is aimed at streamlining sectorial programmes and projects within the framework of the Medium Term Expenditure Framework (MTEF) and to further consolidate on the gains of this administration in the last four years as contained in Second Term Blueprint Christened the REDEEMED agenda.
“The varying competing needs of different sectors would be prioritized and programmes/projects necessary to address them properly aligned within the Medium Term Sector Strategy (MTSS)
“To this end, the main objectives of 2022 Budget are to grow Independent Revenue (IR) by a minimum of 20 per cent every year from 2022-2024, improve the State’s Fiscal Performance to increase the State’s draw-down on Federal Government and International Performance-based grants.
“It is also to consolidate on the development of Infrastructure by completing ongoing projects across the state and to empower Youths, Artisans, Farmers and Market Women; sustain the regime of peace being enjoyed in the state; Create rural economy and enhance community development.
To create efficiency in Personnel and Overhead Expenditure as well as debt service costs to allow greater resources for Capital development and improve health care delivery system to combat the spread of COVID-19 Pandemic and other dreaded diseases in the state.”
In the budget, a total of N102.106 billion was budgeted for recurrent expenditure, N79.621 billion is proposed to be expended on capital projects in the 2022 fiscal year, N13.872 voted for debt repayment and N13.557b for statutory transfer.
The governor explained that, in compliance with the best practice of classifying government functions on a sectoral basis for analysis, the Capital Expenditure is broken down with Economic sector having N103.285b, Social N55.504b and Environmental and Regional Development alloted N4.992b
He said “The economic sector has the highest allocation with 54 per cent. This is so as it is the sector that stimulates the economy, and would create anticipated jobs for the teeming unemployed youths.
He maintained that the year 2022 budget will consolidate on the previous achievements through aggressive revenue generation towards ensuring delivery of more democratic gains.
The governor said, “in order to achieve the objectives above, the government will raise revenue from various sources.
“The projections are, however, predicated on the assumptions contained in the 2022 Federal Government 2022-2024 MTEF where indices like crude oil production and benchmark price, inflation rate, Gross Domestic Product (GDP) amongst others had been reasonably and realistically determined”
“With the aim to further consolidate on the State’s infrastructural development, as well as expand the industrial base of the State, the sum of N79.621 billion is proposed to be expended on capital projects in the 2022 fiscal year.
Emphasis is on completing ongoing projects that have reached an advanced stage of implementation. Also, new industrial grounds would be covered in the next fiscal year as part of our drive to industrialise the State.
“We have had a reasonable influx of investors into the State in the last four-and-half years of our administration as evident at Ore Industrial hub and others spread across the three other Senatorial Districts of the State.
“Let me say that our administration is irrevocably committed to making Ondo State a true investor first choice of destination as we continue to take maximum advantage of our God-given endowment, thereby bringing prosperity and job creation to our people.
“As we speak, we are currently working on 16 high net worth industrial investments to really catalyse the desired industrial resurgence in the state.”
Receiving the budget, the Speaker, Hon. Bamidele Oleyelogun commended Akeredolu for giving priority to all sectors in order to ensure all-around development in the state.
They assured that the budget would be sent to the appropriate quarters, saying the lawmakers would do the needful for thorough and speedy passage of the proposed budget estimates into law