The State Government would next fiscal year spend the sum of N191b for the development of the state.
The proposed estimate has a recurrent expenditure of N102.106b and capital expenditure of N79.621b.
The sum of N13.872 would be used to pay debts while N13.557b is to be spent on statutory transfer.
The estimate presented to the State House of Assembly, tagged “Budget of Economic Re-Engineering”, by the Commissioner for Finance, Wale Akinterinwa, is premised on the theme ‘Industrialisation for Inclusive Growth, Empowerment and Wealth Creation’.
According to Governor Rotimi Akeredolu, the budget which represents an increase of 9.59 per cent over the 2021 budget was based on the world’s economy which is gradually but steadily emerging from the debilitating effects of the COVID-19 pandemic.
“the policy thrust and priorities of government in the next fiscal year is aimed at streamlining sectorial programmes and projects within the framework of the Medium Term Expenditure Framework (MTEF) and to further consolidate on the gains of this administration in the last four years as contained in Second Term Blueprint Christened the REDEEMED agenda “.
“The varying competing needs of different sectors would be prioritized and programmes/projects necessary to address them properly aligned within the Medium Term Sector Strategy (MTSS). To this end, the main objectives of 2022 Budget are to grow Independent Revenue (IR) by a minimum of 20 per cent every year from 2022-2024, improve the State’s Fiscal Performance to increase the State’s draw-down on Federal Government and International Performance-based grants “.
Speaking further , he noted that , “It is also to consolidate on the development of Infrastructure by completing ongoing projects across the state and to empower Youths, Artisans, Farmers and Market Women; sustain the regime of peace being enjoyed in the state; Create rural economy and enhance community development. To create efficiency in Personnel and Overhead Expenditure as well as debt service costs to allow greater resources for capital development and improve health care delivery system to combat the spread of COVID-19 Pandemic and other dreaded diseases in the state.”
The governor explained that, in compliance with the best practice of classifying government functions on a sectoral basis for analysis, the Capital Expenditure is broken down with Economic sector having N103.285b, Social N55.504b and Environmental and Regional Development alloted N4.992b.
Akeredolu said, “The economic sector has the highest allocation with 54 per cent. This is so as it is the sector that stimulates the economy, and would create anticipated jobs for the teeming unemployed youths.
He maintained that the year 2022 budget will consolidate on the previous achievements through aggressive revenue generation towards ensuring delivery of more democratic gains.
“in order to achieve the objectives above, the government will raise revenue from various sources.
“The projections are, however, predicated on the assumptions contained in the 2022 Federal Government 2022-2024 MTEF where indices like crude oil production and benchmark price, inflation rate, Gross Domestic Product (GDP) amongst others had been reasonably and realistically determined”
“With the aim to further consolidate on the State’s infrastructural development, as well as expand the industrial base of the State, the sum of N79.621 billion is proposed to be expended on capital projects in the 2022 fiscal year.
“Emphasis is on completing ongoing projects that have reached an advanced stage of implementation.
Receiving the budget, the Speaker, Hon. Bamidele Oleyelogun commended the governor for giving priority to all sectors in order to ensure all-around development.
The lawmakers gave the assurance that the budget would be sent to the appropriate quarters, noting that a thorough job would be done.