Makinde presents N266.6 billion budget to Oyo Assembly

Oluseye Ojo, Ibadan

Governor Seyi Makinde of Oyo State on Monday presented a budget proposal of N266.6 billion to the Oyo State House of Assembly for the 2021 fiscal year, with the education sector receiving the lion share of the total budget estimate.

The appropriation bill tagged, “Budget of Continued Consolidation, the Governor said, was prepared with 25.16 per cent increment over the N177 billion 2020 revised budget. The difference between the two budgets is about N92 billion.

Makinde stated that over N130.3 billion was allocated to the capital expenditure, while the recurrent expenditure also received over N136.2 billion. He said his target was for the capital expenditure to surpass the recurrent expenditure, but the State would get there. He said his administration targets 70 per cent budget performance.

The education sector received the lion share of the 2021 appropriation with the allocation of N56,348,375,635.55, which represents 21 per cent of the total budget estimate to the sector. The governors said the allocation also represents 12 per cent increment over the 2020 budget, adding that the allocation to the education sector is also well above the recommendation of the United Nations Educational Scientific and Cultural Organisation (UNESCO).

The budget proposal also has an allocation of N46,067,695,661.13, representing 17.27 per cent of the total budget sum for provision of infrastructure. The Governor said it represents an increase from N33.66 billion for infrastructure in the 2020 budget. The agricultural sector also received an allocation of N9,575,049,923.14, which is 3.6 per cent of the total budget. A total of N13,292,525,429.28, which represents 4.9 per cent of the total budget was also proposed for the health sector.

Makinde said: ‘The total budgeted sum is ₦266,644,273,305.04. This sum represents a 53.16 per cent increase over the 2020 revised budget. The tenets of the Federation’s Fiscal Sustainability Plan (FSP) and other development aspirations were used as a guide in the preparation of the 2021 Budget. Recurrent Expenditure is N136,262,990,009.41, while the Capital Expenditure is 130,381,283,295.63. Our aspiration is to have a budget where the capital expenditure is higher than the recurrent expenditure as this will lead to more development.

‘A comparison between these figures and the total expenditure in the 2020 budget shows that we have been able to shave off about N2 billion in the difference between the recurrent and capital expenditure. If we continue this way, in the next couple of years, we would be talking about the capital expenditure exceeding recurrent expenditure.’

Makinde also stated that in the 2021 budget, his administration plans to increase Internally Generated Revenue (IGR) to 102,824,207,213.46. According to him, this would be achieved by widening the tax net to bring in more taxpayers into the system, without necessarily increasing the existing taxes being paid.

The Speaker of Oyo State House of Assembly, Adebo Ogundoyin, in his comment, promised that the lawmakers would thoroughly scrutinise the bill and give it accelerated passage. He assured the people of the State that the Ninth Oyo Assembly would work with the Executive and other stakeholders to ensure at least 70 per cent budget performance for 2021, ‘which is also the focus of the Governor as against 50.03 per cent performance of the outgoing fiscal year. We both hope and pray that this budget, in its execution, shall enhance and improve the quality of lives of the people of Oyo State, heralding peace and prosperity in the next fiscal year.’

The budget presentation was graced by the Deputy Governor, Rauf Olaniyan and other top government officials. Chairman of the Peoples Democratic Party (PDP) in the State, Kunmi Mustapha, also led the executive council of the party to the ceremony. The royal father in attendance includes the Alaafin of Oyo, Oba Lamidi Olayiwola Adeyemi III; the Olubadan of Ibadanland, Oba Saliu Adetunji, Aje Ogungunniso I; the Aseyin of Iseyin, Oba Abdul-Ganiy Adekunle; Okere of Saki, Oba Khalid Oyedepo, and representative of the Soun of Ogbomoso, Oba Jimoh Oyewumi Ajagungbade III.