The Ogun state is to spend 55% of its budget in 2012 on Capital projects. This represents an 18% increase in the allocation for the previous year. The state commissioner for Budget and Planning, Mrs. Oluwande Muoyo gave the breakdown during a Breakdown session on the budget to major stakeholders in the state capital, Abeokuta. For the 2012 fiscal year, the state government will spend N200B. Out of this, N110b will go to Capital Projects while N90B is for Recurrent Expenditure.
The commissioner explained that the increase in the allocation for Capital Projects was to allow for massive Infrastructural development which is one of the five cardinal programs of the Amosun administration.
“The CAPEX/Recurrent Ratio for 2012 is 55:45 as against 37:63 in 2011. This is to pursue our objective of aggressively rebuilding Ogun State through priority for investment spending” she said.
While 33% of the budget will be funded from internal sources, 67% will be funded from projected inflow from the Federation Account (35%) and Capital Receipts (32%). A further breakdown of the budget shows that 67% of the budget will be spent on the administration’s 5-cardinal program (Education, Rural & Infrastructural Development /Employment Generation, Housing & Urban Renewal, Healthcare and Agriculture/Industralisation.). Education takes the lion share of N42.4b, representing 20% of the entire budget, while Housing and Community Amenities will gulp N29.1b.
The commissioner noted that the state government intends to pursue an aggressive Internally Generated Revenue for 2012, with an expected IGR of over N100b. This the government expects to achieve by widening its tax net, especially the residency rule, Improved Collection Mechanism and Blockages of leakages in the system. - www.ogunstate.gov.ng