Gov. Amosun prioritises capital expenditure, proposes N221bn budget for 2017

             

Putting into consideration the sharp slides in the gross domestic product and production capacity of manufacturing companies operating in the country as a result of non-availability of vital economic variables, Governor Ibikunle Amosun of Ogun state on Tuesday proposed N221 billion for the 2017 fiscal year, prioritising capital expenditure.

Governor Amosun, while presenting the Appropriation Bill tagged “the Budget of Repositioning” before the Suraj Adekunbi-led State House of Assembly in Abeokuta, made a U-turn from the last year budget which voted N100.91bn to capital expenditure, representing 50.4% of the total budget  as against N99.29bn to recurrent expenditure, representing 49.6%.

The 2017 Appropriation Bill prioritises capital expenditure with a N118.306bn vote, representing  53.50%, while recurrent expenditure gets N102.823bn which represents 46.50% in the N221.129bn total fiscal proposal which an increase of 10.45% over 2016 Budget.

Governor Amosun also down played revenue from the Federation Account to N41billion which represents paltry 18.5% of the total revenue proposal for the fiscal due to forecast continued volatility in the price of global crude oil, while serious focus was shifted to internally-generated revenue which is expected to stand at N114.34bn, representing 51.71%, and capital receipts of N65.70bn which represents 29.7%.

Speaking on the floors of the State House of Assembly, Governor Amosun declared that much emphasis would be placed on capital projects across the state to stimulate economic development and increase productivity with the immediate provision of motorable roads, light rail construction and other key economic variables that would contribute to huge economic growth.

He disclosed that the state government had signed up for World Bank’s Rural Access and Mobility Project (RAMP) which provides access to a $60 million development fund that will cover 500km of roads in rural areas across the 20 local government areas and the completion of feasibility and environmental impact assessment on light rail project to constructed by CRCC/CCECC, a Chinese Construction Company.

According to him, “Our intention to reposition the State’s economy requires us to continue to place greater emphasis on capital expenditure. This budget mix will support both the maintenance of existing infrastructure and allow the continued execution of more capital projects.”

The sectorial breakdown revealed that affordable qualitative education would take N47.054 bn representing 21.28% as Efficient Health Care Delivery would get N15.105 bn standing at 6.83%, while the sum of N11.610bn representing 5.2% would be allocated for agricultural production/ industrialization. Other cardinal programmes such as affordable Housing and Urban Renewal would get N28. 57 bn standing at 12.92% just as Rural and Infrastructural Development as well as Employment generation would gulp N44.201bn representing 19.99% while other sectors would be given the remaining N74.58 bn representing 33.7%.
Speaking after the submission of 2017 Appropriation Bill by the governor, the Speaker of the House, Suraju Adekunbi said the legislative arm of government has been collaborating with the executive arm in advancing the socio-economic development of the State, thus the Assembly had within the last one year passed three bills into laws, and pledged that everything would be done to ensure quick passage within a reasonable time frame.