Considering the dwindling state’s revenue from the Federal Accounts and Allocation Committee (FAAC), the internally generated revenue, and from other revenue sources, Governor Dapo Abiodun of Ogun state has declared that a zero-based budgeting system will be considered in the state 2021 fiscal estimates to work against wastages and financial leakages that drain the available limited resources.
Speaking at the Treasury Board Meeting on the 2021-2023 Medium-Term Expenditure Framework (MTEF) in Abeokuta, the state capital on Tuesday, the governor noted that the current economic realities necessitate fiscal emphasis to be placed on the relative value and cost of each expenditure item, saying priorities must be on critical infrastructure, education, health and other economic areas that are capable of unlocking the socio-economic potentials of the state.
He said, “That is why the desire and approach to accelerating the pace of the socio-economic development in a State depend on key economic decisions made, not only by the government but by all stakeholders affected by such decisions.
“And, on the other hand, achieving the targets and objectives of the economic planning is largely dependent on the functionality of the government’s machinery, and those who manage the economy on behalf of the government. All this informs the deliberate and calculated approach our administration has adopted in the preparation of a functional annual budget for Ogun State since 2019.”
Also, Babatunde Adesina, Special Adviser to the Governor on Works and Infrastructure, disclosed that the Ogun state government would spend a total of N40.45 billion for the completion of all ongoing road and bridge construction projects and new roads as well as rehabilitation of the existing ones across all the three Senatorial districts.
Adesina added that government would establish an asphalt plant through the State Ministry of Works and Infrastructure to boost economic development and create employment for its citizenry, saying that the asphalt plant when established would boost the Ministry’s Internally Generated Revenue (IGR), also the test plant to evaluate the quality of materials to be used for construction purposes would be set up.
Responding to the Ministry’s fiscal proposal, Governor Abiodun advised that roads to be constructed by the Ministry should align with the expectations of the people, as generated from the 2021 Budget Stakeholders’ Engagement, adding that the infrastructure development in the state would be in line with the government- inclusive governance approach for quality service delivery.
