Ogun Budgets N187.9 Billion For 2012

Governor Ibikunle Amosun of Ogun State this afternoon at the floor of the State House of Assembly,Oke Mosan in Abeokuta, presented a total budget of N187,901 billion for the 2012 fiscal year with education taking the largest percentage.
The budget which is N65 billion higher than the N124.61 billion budgeted for year 2011 is  christened ‘Budget to Rebuild’. The budget is made up of N99.594 billion (53 percent) capital expenditure and N88, 306 billion (47 percent) recurrent expenditure.
Amosun disclosed that the budget would be financed through Internally Generated Revenue (IGR) of N63. 601 billion or 47 percent and Federation Account of N70.800 billion or 53 percent.
Presenting the budget estimates, the governor explained that 65 percent of the 2012 budget
would be spent on his five-point agenda of “Affordable education (N41.483 billion or 22 percent), Rural and Infrastructure Development and Employment Generation (N33.432bn or 18 percent), Affordable Housing and Urban Renewal (N22.956 billion or 12 percent), Efficient Healthcare Delivery ( N15.706 billion or 8 percent) and Agriculture Production/Industrialization (N8,813 billion or 5 percent).”
Amosun told the crowd who witnessed the presentation of the first budget of the administration that his government plans to put in place an economic plan that would not continue to be dependent on the allocation from the Federation Account.
He explained that he has put in motion a process of re-engineering the finances and the accounting process in the state to eliminate wastage and make the state financially self-dependent.
The governor said he decided to give premium to the education sector because of the belief that education is the future of the state,stressing that with a sound education, the future of the state is secured.
He disclosed that his administration intends to, “ensure the sustenance of the provision of the free and qualitative education at primary and secondary school levels, construct additional buildings in public educational institutions, embark on massive renovation and
maintenance of dilapidated structure in our schools and supply furniture to enhance students enrolment, retention and performance.”
Senator Amosun also revealed plans by the government to establish five model secondary schools with hostel facilities in the three senatorial districts of the state and to procure instructional materials and textbooks for all students in public schools.
On road, he disclosed that the sum of N24.56 billion representing 13.07 percent of the total budget for the year has been earmarked for rural and infrastructure development of the state.
According to Amosun,”It is hoped that this will transform the face of our dilapidated infrastructure, adding that a total of seventeen roads would be rehabilitated during the year.
On health, the governor said it is the consciousness to reduce disease and make healthcare available to its citizens and develop capacity in our state that made his administration to invest heavily in the sector.
On Industrialisation, the governor said, “our administration will kick-start the process of industrialization through the implementation of the Industrialization Master Plan which is currently being fine-tuned. We will also play a major facilitatory role for small and medium scale entrepreneurs.”
A major initiative in this regard will be the creation of several industrial parks across the state while access roads will be constructed in the rural areas to link the existing major roads.
Other plans by the government as highlighted by the governor is “the provision of soft loan and empowerment facilities to micro, small and medium enterprises in the state, establishment of technology incubation centres in Ogun West and Ogun East senatorial districts of the state, and the provision of access roads to the technology incubation centre in Ogun Central senatorial district”.
On housing, Amosun spoke of plans to construct two and three bedroom low income housing units across the state, creation of a robust real estate market that can deliver development at an accelerated rate and renovate existing quarters within Ibara Housing Estate.
Governor Amosun added that with the planned removal of petroleum subsidy by the federal government, the state intends to cushion the effect of the development on the people through the re-introduction of mass transit programme. He disclosed that a sum of over N2 billion has been earmarked for the purpose.
Among the dignitaries who witnessed the budget presentation were some former governors of the state like Aremo Olusegun Osoba, Navy Captain Oladeinde Joseph, Maj. Gen. Oladayo Popoola (retd.), former deputy governor of the state, Alhaji Rafiu Ogunleye as well as the gubernatorial candidate of the People’s Democratic Party (PDP) in the last general election in April 2011, Gen. Adetunji Idowu Olurin.

http://pmnewsnigeria.com/2011/11/29/ogun-budgets-n187-9-billion-for-2012/

A bit of inconsistency in the numbers of this writeup.

I also wonder how spending in the different categories has changed from previous years.

I agree, he has "talked a good game" but the figures don't add up, especially the IGR of N63 billion. According to the finance commissioner, the monthly IGR has only just being increased from N150 million to N1 billion and that's a very long way from N63 billion p.a , but maybe they have other plans for revenue generation.

Calabar, Nigeria: The Commissioner of Finance, Ogun State, Nigeria Mr. Kehinde Sogunle says the state government through technology deployment could enhance Internally Generated Revenue (IGR) process. He says through the deployment of Interswitch PAYDirect Payment System, Ogun State had increased its IGR from N150 million to N1billion monthly, adding that more effects in terms of revenue generation were being expected in a few months.

Mr. Sogunle spoke at the annual Techno-Interactive Conference & Awards in Calabar organised by Interswitch, which was attended by representatives of the all the banks under the theme, ‘Leveraging e-Payment Channels in a Downturn.”

According to Sogunle, technology has given room to good forecasting, planning and budgeting while curbing various anomalies that had over the years characterised the revenue generation process of government.

“There are many gaps and leakages in the system. In addition, a good database which technology provides is important. This will stimulate economic activities, and facilitate the entire development process as far as governance is concerned,” he says.

http://www.financialtechnologyafrica.com/Ogun_State_Increase_IGR_From_N150m.htm?reload=true

I think they hope to work out an arrangement with Lagos state whereby those who live in Ogun state but work in Lagos pay their PAYE to Ogun state, I think that will be a cash cow for Ogun state.

hercules07:

I think they hope to work out an arrangement with Lagos state whereby those who live in Ogun state but work in Lagos pay their PAYE to Ogun state, I think that will be a cash cow for Ogun state.

Ogun state has lost loads of resources to lagos state. people are just ripping Ogun state. How can someone be living in Ogun state and be loyal to Lagos.

@Afam

Which one is loyalty in this case now, most workeers have their salaries deducted by their employers, it is the function of the companies to send the money to the appropriate tax authority.

hercules07:

@Afam

Which one is loyalty in this case now, most workeers have their salaries deducted by their employers, it is the function of the companies to send the money to the appropriate tax authority.

I know that. But there should be a way Ogun state can get something from these people. They're using Ogun state resources too.

Ogun state needs to step up its game jare, they should make the state more attractive to people who live in there, those border towns should have the best of facilities, a lot of people will prefer to spend their money in Ogun state rather than Lagos state if the right things are put in place, PAYE is not the only source of revenue that they can get.

Ogun state should focus on developing places like Sango Ota, Lagos-Ibadan expressway that have a border with Lagos state.

Those people are already paying taxes to Ogun state one way or the other and they pay their bills for hospital and other amenities. The tax on traders is passed to them through the goods they purchase. Their income from Lagos also help businesses in Ogun to continue to grow.

Many people are unemployed in Lagos, so Lagos actually provides a means of livelihood for residents of Ogun at their own expence. This means that the GDP of Ogun grows due to the financial empowerment of Ogun resident-Lagos employees, who are able to buy from businesses in Ogun state.

Lagos is not about to cede their income to any state, especially when it has contributed to the reduction of the unemployment figure of that state.

Lagos can actually turn around and say that Ogun residents working in Lagos should start paying capital flight tax in addition to their normal tax.

Ogun should look towards introducing residence/community taxes rather than targeting Lagos workers.

Gurus Globe
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