Governor Oluwarotimi Akeredolu led administration is to embark on more key capital projects across the eighteen local government areas of Ondo state in 2021. Such projects include rehabilitation and construction of State highways, Establishment of Cancer Treatment Center, renovation of Schools, Establishment and Management of Deep Sea port, scholarship and bursary awards among others.
The Commissioner for Economic planning and Budget, Mr Emmanuel Igbasan disclosed this while breaking down the 2021 budget tagged “Budget of Hope” held at the Ministry’s Conference Hall, Alagbaka, Akure, the Ondo State Capital.
Igbasan flanked by the Commissioner of Finance, Wale Akinterinwa; Information and Orientation counterpart, Donald Ojogo and the Permanent Secretary of the Ministry of Economic Planning and Budget, Chief Bunmi Alade explained that out of the 2021 budget of #174.873 Billion, #69.915Billion would be expended on capital projects and #79.084Billion would go for recurrent expenditure.
In the subsector analysis of the budget, infrastructural development took largest chunk with #37.048 billion followed by Health sector with #33.550billion and Public Finance with #24.688billion, Health with #17.970billion, as well as Agricultural Development with #8.437billion.
He said “in order to ensure that all the laudable projects in the 2021 budget are well funded and delivered to specifications, there classes of revenues have been distilled out as follows: Federation Account-#57.923Billion, Independent Revenue/Internally Generated Revenue – #28.778Billion, other Revenue Sources – #88.172Billion.
A total, #79.084 billion is earmarked for recurrent expenditure in year 2021, this according to the Commissioner represents a slight increase of 5.4% in the allocation in 2021 over the 2020 figure of N75.022. He said this is to cater for the ameliorative provisions for Covid19 relief and the salary arrears of workers.
In order to maintain and sustain all the laudable Capital projects being put in place by the present administration, adequate provision was made for maintenance recurrent expenditure in 2021 Budget. These and others led to the increase in recurrent provisions.
The sum of #42.228 billion or 53.4% of total recurrent vote has been earmarked for Personnel Cost for the year 2021 Budget. This will take care of promotion, annual increments and salary arrears that might be paid in the course of the year.
Under this vote, a total of N9.558 billion or 12.1% of recurrent expenditure has been set aside to take care of the Personnel Cost of Parastatals and Tertiary Institutions across the State. It is expected that Tertiary Institutions will generate internal revenue to augment their expenses while the grant will complement Personnel related costs.”
Igbasan said “This Budget is intended to help us realise our collective dreams and aspirations for the state, while working in partnership with the private sector.” He explained further that the main focus of 2021 Budget is aimed at human Capital Development, stimulate economic development, expand the fiscal space and entrench good governance.
Pastor Igbasan, who noted that the success of the budget is going to be a joint responsibility of all stakeholders in the polity, therefore used the medium to appeal to all residents of the State to pay their tax in order to serve as impetus for government to continue to provide public goods and services for the citizens.