Amosun presents N200.2bn budget to Ogun Assembly

http://www.gatewaymail.org/wp-content/uploads/2015/09/Senator-Ibikunle-Amosun...Ogun-State-Governor-of-Nigeria..jpg

 

NIGERIA: OGUN State Governor, Senator Ibikunle Amosun, has presented a budget proposal of N200, 274, 453, 352 to the state House of Assembly for scrutiny and approval.

The Governor, who stated that he would not be part of his fellow governors who are planning to slash the N18,000 minimum wage for the least paid worker, said that the amount for the  2016 fiscal year was 4.79 percent (i.e N10 billion) less than N210.35 billion budgeted for the current financial period.

Amosun while presenting the budget, tagged “Budget of Optimisation,” to the lawmakers, said it was a reflection of his government’s resolve to minimize costs and maximize capacity in order to generate revenues.

According to him, the Appropriation Bill would be financed largely from various sources.

The sources, he stressed, included Internally Generated Revenue of N108 billion (53.93%), Federation Account of N42 billion (29.97per cent), External Loans of N40.27 billion (20.11 per cent) and Grants of N10 billion, representing 4.99 per cent.
He said that in the proposed budget government would commit N99.29 billion (49.6 per cent) to capital expenditure and N100.98 billion (50.4per cent) to Recurrent Expenditure, while personnel cost – salaries and allowances – would gulp N61.34billion, and pension and gratuities of N11billion would be 36.1per cent of the total recurrent expenditure.

The Governor explained that the balance of N28.6 billion (14.3per cent) would be set aside as overhead costs.
“We placed great emphasis on capital expenditure during our first term, in line with our development objectives. Our emphasis has now shifted a little and the budget this year is balanced between capital and recurrent expenditure,” Amosun said, adding: “This budget mix will support both the maintenance of existing infrastructure and allow the continued execution of more capital projects.”
He further explained that N40.170 billion, representing 20.06 per cent, was set aside for Education, N14.346 billion (7.16per cent) would be spent on Healthcare delivery, N10.167 billion (5.08per cent) would be for Agricultural Production/Industrialization, while Affordable Housing and Urban Renewal would gulp N26.567 billion, representing 13.27per cent.
While assuring that the princely budget would be utilized to carry out government’s five cardinal programmes, Amosun said Rural and Infrastructural Development/Employment Generation was allocated N31.048 billion (15.50 per cent) and other sectors would account for N77.973 billion, representing 38.93 per cent.
On the minimum wage, the Governor stressed that despite the financial challenges confronting the state, his government would not be part of the planned reduction of the minimum wage, rather he would see to how the amount should be raised.

His words: “I am not part of any move to say we can’t pay N18, 000 minimum wage to our workers and in any case, what we did when we came in in August 2011, I probably was the only person that didn’t only limit it to N18, 000 but N18, 250 or so.  If I didn’t then, the day we have enough money and we generate enough revenue, I will even move mine to N20,000 or even N25, 000.”
He added: “But for now, the N18, 250 we are paying, I will not subscribe to anybody saying we should reduce it or that they can’t pay, I am not part of those that said that. For me, we should continue to struggle to pay the minimum wage of 18, 000 Naira.”
Amosun listed the number of roads he would give priority and ensure their completion while maintaining that all on-going projects in the state, particularly the roads under construction, would be completed before the expiration of his second term.

The Speaker of the Assembly, Suraj Adekunbi, in his remarks, said the Appropriation Bill was “another milestone towards building Ogun State of our dream.”

According to him, the presentation of the budget was another testimony of the vibrancy of the Amosun administration, even as he promised that the lawmakers would accord the budget proposal a speedy scrutiny and prompt passage.