Governor Seyi Makinde of Oyo State on Wednesday presented N294.5 billion appropriation bill for the year 2022 to the State House of Assembly.
This is N24.8billion lower than that of the 2021 budget of N318.8billion.
The 2022 budget proposal tagged “Budget of Growth and Opportunity,” has N156billion (52.97 percent) allocated for capital expenditure while the recurrent expenditure is put at N138.5billion (47.3 percent).
“Of course, we have maintained a lower recurrent expenditure to capital expenditure ratio. As with the 2021 budget we used the tenets of the Federation’s Fiscal Sustainability Plan (FSP) and other development aspirations as a guide.
Presenting the budget on the floor of the Assembly with top government functionaries, traditional rulers, community leaders among other relevant stakeholders in attendance, Governor Makinde said for the 2022 fiscal year, “we are projecting an Internally Generated Revenue of N79,796,513,040.00 (Seventy-Nine Billion, Seven Hundred and Ninety-Six Million, Five Hundred and Thirteen Thousand, and Forty Naira). This is a tall order, but we intend to accomplish this without increasing taxes.
As in the previous years, we will continue to expand our tax base to include more in the informal sector. We already see this working to our advantage as the recently released figures shows that our contributions to Nigeria’s Value Added Tax shot up to over N64 Billion”.
On sectoral allocation, infrastructure got the highest of Ninety-Six Billion, Six Hundred and Eighty-Six Million, Five Hundred and Thirty-Four Thousand, Nine Hundred and Eighty-Seven Naira (N96,686,534,987.00) .
This is 32.83% of the total budget.
“We will continue to reduce the infrastructural deficit in Oyo State” Makinde stated
Also, the budgetary allocation to the Education sector stands at fifty-four billion, one hundred and sixteen million, seven hundred and seventy-three thousand, seven hundred and sixty-four Naira(N54,116,773,764.00) representing 18.37%.
According to the Governor, as can be noted, we have continued our tradition of keeping the education allocation above UNESCO standards.
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The total proposed Healthcare budget is Seventeen Billion, Four Hundred and Five Million, Seven Hundred and Forty-One Thousand, Seven Hundred and Ninety-Two Naira(N17,405,741,792.00) that is or 5.9% of the budget.
He however said that “we continue to use agribusiness as one of the main drivers of the Oyo State Economy. To this end, we propose an allocation of Eleven Billion, Three Hundred and Nineteen Million, Two Hundred and Eighty-Nine Thousand, Seven Hundred and Thirty-Seven Naira (N11,319,289,737.00) which is 3.84 % of the budget to this sector.
He disclosed that a major project “we will be carrying out in 2022 is 110km Ibadan Circular Road. This tolled road will be a major economic boost as it will create an alternate entry and exit point out of Ibadan and connect the new economic corridor and business district, we are building at Moniya.
“Also, we will commence the reconstruction of the Iseyin-Ogbomoso Road to further boost economic activities in the state.
“Opportunities, as we continue to create an enabling environment for the private sector to thrive and open our doors to both local and foreign investors in agribusiness, tourism and other sectors.
“We are also exploring new areas of comparative advantage and encouraging investments in them. As we always say, our doors are open, come and talk with us. In the next few weeks, we will be welcoming the world to Ibadan as we host the Oyo Agribusiness Summit 2021. This is a collaboration between the Oyo State Agribusiness Development Agency (OYSADA) and the International Institute of Tropical Agriculture (IITA).
On the 2021 budget going by half-year analysis, the Governor said the Oyo State Budget performance stood at 60%.
“We still have our sights on raising this to 75% before year-end while on the revenue side, the state’s actual aggregate revenue was N78.2 billion. The sum of N16.2 billion representing 31.49% was realized as the Internally Generated Revenue (IGR) while Statutory Allocation from the Federation Account Allocation Committee was N17.13 billion representing 62.29%.
“We have continued to follow the Roadmap to Accelerated Development in Oyo State, 2019-2023 which highlights the four sectors that our administration has prioritised in engineering a prosperous Oyo State.
On Security, he revealed that the state has made provisions to recruit more Amotekun Corps members and continue to make investments in technology that supports the security architecture in Oyo State.
“We have always prioritised infrastructural development in Oyo State. And last year was not an exception. We have recorded strides in the development of infrastructure which we believe will generate more income for the state. The Challenge Bus Terminal is 70% complete, while the other three terminals at Iwo Road, New Ife Road and Ojoo are ongoing. The Fasola Agribusiness Industrial Hub is at about 40% completion. Significant progress has also been made in reconstructing the 21km Airport- Ajia-New Ife Express Road with a spur to Amuloko, 12km Apete-Awotan-Akufo Road and the 44.7km Saki-Ogbooro-Igboho Road. The Idi Ape-Basorun-Akobo- Odogbo Barracks Road and the 5.2km Gedu-Oroki-Sabo-Asipa Road are nearing completion.
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