Ogun State Governor Ibikunle Amosun has just presented a total budget of N221.129 billion for the 2017 fiscal year to the State House of Assembly.
The budget was titled the “Budget of Repositioning”, represents an increase of 10.45 per cent compared to the 2016 budget.
Mr. Amosun, while presenting the budget, explained that the recurrent expenditure will cost N102.82 billion or 46.50 per cent of the budget, while capital expenditure will take N118.306 billion or 53.50 per cent.
He said “Our Expenditure consists of Capital Expenditure of N118.306bn (53.50%) and Recurrent Expenditure of N102.823 billion (46.50%),” he said.
“Personnel Cost, made up of Salaries and Allowances stands at N62.73 Billion while Pension and Gratuities account for N11.2Billion which is about for 5.06% of Total Expenditure. The balance of N28.89 Billion which accounts for 13.07% is set aside for the Overhead Costs,” the governor added.
Mr. Amosun said the governor said 51.71 per cent or N114.34bn of the proposed N221.129 billion Budget is to be funded from IGR while N41bn or 18 percent is expected from the federations account.
He said capital receipts is expected to contribute N65.78bn or 29.75 percent of the budget. Mr. Amosun while lamenting the poor revenue of the state in 2016, said that “as at 31st October, 2016, the overall Budget performance was 56.2%.
Ogun state is one of the largest state in South West Nigeria. Apart from federal allocations, the state depends majorly on tax revenue from manufacturing, agro-allied and food producers. However, the lingering recession has crippled infrastructure development in the state.