In his determination to take the Oyo State to a new height of socio-economic development, Governor Seyi Makinde has promised that the State would attain 70 percent budget implementation and N1 billion budget status under his administration.
This is contrary to what obtained in the past when the State had never gone beyond about 40 percent budget implementation.
Makinde made the vow while signing into Law, the revised 2019 Budget of N182.4 billion, passed by the State House of Assembly.
The event held at the Executive Council Chamber of the Governor’s Office, Secretariat, Agodi, Ibadan, the State capital.
The Governor maintained that the present economic status of the State has made imperative, the downward review of what he described as “the over-bloated Budget presented by the immediate-past administration” in the State, as there was no money to fund it.
The Governor explained that at the inception of his administration, a budget of N285 billion was met on the ground.
On checking the revenue profile, it was discovered that the State receives N5 billion monthly from the federal allocation, with an internally generated revenue of N2 billion making it roughly N7 billion monthly and N84 billion yearly.
He noted that, “We need to cut our cloth not according to our size, but available material. We came in when money has been spent to the fifth month of the year. We looked at the profile and if we continue on the path, at the end of the year, we could only achieve 25 to 38 per cent budget performance. So, we decided that our target for the year would be at least 70 per cent budget performance.”‘Not photo-trick’
Asserting that the desire of his administration is for the State to get to the $1billion Budget club, Governor Makinde gave the assurance that attaining the status of $1billion budget state, under this administration, would not be a photo-trick but a reality.
He disclosed that, “Before we came in, the Ministry of Finance and Budget was lumped together. We thought what we saw as Budget is a product of lumping together those two ministries, then to do a better job, we have to plan better and we separated the ministries. I also want to thank the Speaker and members of the House for acceding to our request to separate the two ministries.”
Consequent to the separation of the two ministries, Oyo State now has the Ministry of Finance and the Ministry of Budget and Planning.
The Speaker of the State House of Assembly, Mr Adebo Ogundoyin, who led other lawmakers to the ceremony, said the Appropriation Bill that was signed into law came at a perfect time.
He stated that it was the norm that budgets were always over-bloated, but the case took a new dimension under the current administration.
Ogundoyin remarked that, “As we all know, most budgets are always over-bloated, but His Excellency, in his own wisdom, decided to review the Budget according to our available resources. There is no way you can plan for a State without having the actual revenue well accounted for and well appropriated. This is a welcome development.”
He noted that the budget of N285 billion that was passed by the 8th assembly was an over-bloated budget.
The Speaker also noted that there was no way the performance of government, in terms of budget implementation and planning for the future could be assessed.
He stated, “By looking at the previous budgets, you could tell that the State had no defined plan for a long term plan and the administration in charge at the time just did things as they came, but this time around, with God helping us, I am sure we are all going to reach the destination point.”
The State House of Assembly had on Tuesday passed the reviewed 2019 Appropriation Bill after it scaled through the third reading.
The new Bill, which saw the initial N285 billion passed by the 8th Assembly and signed into Law by the immediate past governor cut down to N182.4 billion, saw the 100 per cent subvention restored to all state-owned institutions.
With the new appropriation which saw ex-Governor Ajimobi’s N285 billion reduced by N103 billion, the recurrent expenditure was jacked up from N94.2 billion to N98.7 billion as proposed by the Executive as well as the capital expenditure increased from N76.7 to N83.6.