By; BAYO AKAMO, Ibadan.
Oyo State Governor Senator Abiola Ajimobi on Thursday presented a budget of N207.6billion to the State House of Assembly for the 2017 fiscal year in the state.
Governor Ajimobi while presenting the 2017 budget titled “Budget of Self Reliance” said it will represent an increase of 19.13 per cent when compared to the last year budget,saying,that “the recurrent expenditure will cost N126.87 billion which is 61.09 per cent of the budget while the capital expenditure will take N80.80 billion or 38.91%”.
Breaking down the budget, the governor said “the personnel cost made up of Salaries, Allowances and Promotion Arrears stands at N56.04 Billion or 26.99 per cent while overhead cost accounts for N20.04Billion which is 9.75%, and that N50.79bn or 24.45 is meant for the Consolidate Revenue Fund Charges to sum up the total Recurrent Expenditure of N126.87 billion”.
According to Governor Ajimobi, the 2017budget has been designed to be Internal Generated Revenue (IGR) driven and that “N107.23bn or 51.64 per cent of the proposed N207.671 billion Budget is to be funded from IGR, N66.49bn or 32.01% from Federation Account while N33.97bn or 16.35 per cent is expected from capital receipts, which is restructuring and reallocation of funds to priority areas”.
He emphasized that Oyo state government anchored the 2017 budgetary proposals on Infrastructure, Agriculture and its value-chain framework, Education and Health, pledging that other sectors would be given adequate attention in order to ensure that the budget achieves it theme as budget of self-reliance and that the restructured Oyo state Board of Internal Revenue was poised for enhanced performance to ensure a realistic budget tenure.
“In the face of the challenges in the outgoing year, arising from almost complete reliance on Federal Allocation which has grave consequences, as Federal Statutory Allocation itself is dependent on extraneous factors, this budget has been designed to be Internally Generated Revenue driven. In the Informal sector, the Board is targeting 20% of the population which is presently pegged at 6million individuals with presumptive tax rate of N3000 per annum.”
Speaking further, he said Oyo state government will continue to pursue Projects and Programs that will attract Assistance and Sponsorship from Development Partners, Promote Public-Private-Partnership initiative as a vehicle in the delivery of infrastructure and services, Stimulate Citizens’ interest in Micro, Small and Medium Scale Entrepreneurships as well as Efficient and Effective Utilization of Resources through rigorous monitoring of the implementation and evaluation of the impact of projects and programs on the citizenry.
Lamenting the poor revenue of the state in 2016, Governor Ajimobi said as at September 30, 2016, the overall budget performance is 46.09% or N79.939bn out the N173,429bn approved estimates for the present fiscal year.
“It is no gain saying that the laudable “Agric-Oyo” programme implemented in 2016 has raised the level of food production in the State by 27.5% and GSP by 1.5%. Consequently, Government will extend “Agric-Oyo” activities to the remaining Local Government Councils that have shown a willingness to collaborate with the state Ministry of Agriculture”.