Ogun State Governor Dapo Abiodun yesterday presented an N472.26 billion budget proposal to the state’s House of Assembly for the fiscal year 2023, with N270.41 billion for capital projects and N201.84 billion for recurrent expenditure.
The “Budget of Continued Development and Prosperity” budget included N79.47 billion for personnel expenditures, N21.12 billion for social contribution and social benefits, N39.90 billion for public debt service, and N61.35 billion for overhead costs.
Abiodun stated that the state would prioritize the completion of all ongoing projects in the coming fiscal year, particularly those with revenue potential that can boost employment generation, projects that are consistent with the priorities articulated in the State Economic Development Plan and Strategy 2021-2025, and projects that align with the seven thematic areas contained in the Medium-Term National Development Plan 2021-2025.
He revealed that the 2023 budget concept came with obvious economic challenges, so the preparation was done with the world economy in mind, which is weakened by the lingering effects of the COVID-19 pandemic, high inflation, high crude oil prices resulting in huge costs of PMS subsidy, continued crude oil theft, and negative spill-over effects of the Russia-Ukraine war on food and dwindling federal revenues.
The governor allocated the greatest portion of the budget to works and infrastructure. He stated that the state would collect N90 billion in internal income from the OGIRS and N120.25 billion from Ministries, Departments, and Agencies (MDAs), for a total of N210.25 billion.
He urged the Assembly’s leadership, however, to ensure that the 2023 budget proposal is thoroughly but expeditiously vetted and returned in earnest for his assent before January 1, 2023, emphasizing that the budget contents stemmed from Ogun people’s wishes expressed at various budget town hall meetings.
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