Governor Seyi Makinde of Oyo State, on Wednesday, signed into law the State’s revised 2020 Appropriation Bill.
The brief ceremony was held at the Government House, Agodi, Ibadan, the State capital, in the presence of the Deputy Governor, Rauf Olaniyan; the Speaker of the State House of Assembly, Adebo Ogundoyin; the Secretary to the State Government, Olubamiwo Adeosun, among other top government officials.
The State House of Assembly had, on Tuesday, approved the request of the Governor to review downward the State’s 2020 Appropriation Bill from the initial N213billion to N174billion. The revised budget is short with about N39.5billion.
“This is the second time in a year that we have had to review the budget downward.
“The reason for the downward review is apparent to all: the economic meltdown we are experiencing, occasioned by the crash in oil prices coupled with the COVID-19 pandemic, which has affected our State’s ability to stick with the original Budget,” Makinde revealed.
The Governor, who noted that poor budget performance had been the major issue that characterized budget implementation in the State in the past, due to lack of funds to implement them, assured that his administration had put some steps in place to ensure that the 2020 budget is adequately funded.
Makinde observed that Oyo State is built as a Civil Service State because the needed action to boost the economy has not been taken, disclosing that his administration is targeting 70 percent budget implementation based on the planned measures that have been put in place.
“So, this revised budget include N65.2billion for capital projects, while N180billion is for recurrent expenditure.
“We plan to pay a huge trunk of our recurrent expenditure through our allocation from the federation account plus our internally generated revenue,” the Governor stated.
While reacting to the recent issuance of a N100billion loan by the State government, Governor Makinde said the only way the State could break the jinx of infrastructural deficit is to take loans.
According to the Governor, the N100billion private bond tagged: “Oyo Prosperity Bond” would be used to facilitate the execution of priority projects that would further drive economic development in the State, adding that the fund would be raised in two tranches of N50billion each for the construction of the 50-kilometre Iseyin-Ogbomoso Road, the Ibadan Circular Ring-Road and the Ibadan Airport upgrade, among others.
“The bond is supposed to be for over thirty-years; if you take the bond and grow your IGR by one billion monthly, you can pay it all within a short period of time earlier than thirty-years.
“We should stop playing destructive politics. We want to be criticized, but constructively and bringing alternatives to the table,” Makinde stated, while thanking the Speaker and all members of the State House of Assembly for the timely review of the revised budget proposal.
Amaka E. Nliam