• Saturday, May 25, 2024
businessday logo


Gov Abiodun says Ogun will rely more on IGR in 2021 fiscal year

Dapo Abiodun

Governor Dapo Abiodun of Ogun state has said that his administration will rely more more on the state’s Internally-Generated Revenue (IGR) as its primary and major source of finance in the 2021 fiscal year.

He however said that his administration, would be mindful of the need to avoid unnecessary tax burden on its citizens, though the ever dwindling revenue from all sources due to the prevailing economic realities is affecting meeting up with financial obligations.

Governor Abiodun, who made this known at the virtual consultative meeting with the representatives of the people of Ogun East Senatorial District in his office at Oke-Mosan, Abeokuta on the 2021-2023 Medium Term Expenditure Framework (MTEF) and 2021 budget, urged the people of the state to continue to support the present administration in the state by discharging their civic duties.

“Despite the steep declines in revenues from the Federation Account, we shall rely more on our internally generated revenue from Ogun State Internal Revenue Service, (OGIRS) and other revenue sources. In this regard, we have strengthened the OGIRS, including recent appointment of a seasoned professional as the Chairman.

“Whilst being mindful of the need to avoid unnecessary tax burden on our citizens, we appeal to them to continue to support us by discharging their civic duties in our joint task of building the state of our future together, we shall continue to give utmost priority to capital project investments in Education, Health, and Infrastructure Sectors,” he said.

The Governor, who also noted that his administration would continue to sustain payment of salaries, pensions and gratuities within limited resources, said that his administration would continue to carry out downward review of overhead expenses at reasonable percentage against revenue generation prospects of Ministries, Departments and Agencies in the State.

Abiodun while noting that the recent payment of the new minimum wage was in line with the agreement reached with labour, urged the labour unions in the state to be considerate in their demands at a time government was also struggling with finances.

He said the Government will give utmost priority to education, health, agriculture and road Infrastructure, as it prepares for next year’s budget.

Abiodun pointed out that his administration would be proactive in the coming year by latching on this years’ experience to improve on service delivery, revenue drive and public private partnership.

The Governor decried the negative impact of the Covid-19 to the economy of the State. He informed that the current year’s budget was reviewed downward from N450bn to N280bn in consonance with the economic realities in the wake of the pandemic, adding that 20% of the 2020 Revised Appropriation was, understandably, allocated to the Health Sector.

“To give life to businesses, various reliefs were given to business owners as part of palliative measures to assist them cope with the economic slide and ensure business continuity. These relief packages include 6- month extension of the 2019 income tax returns deadline for self-employed residents from March 31, 2020 to September 30, 2020.

“We also granted an 8-month extension of filing of 2019 annual PAYE returns by PAYE operators/tax agents from January 31, 2020 to September 30, as well as complete waiver of interest and penalty for late filing for the extension period”, the Governor explained.

He said the hosting of the town hall meeting was a symbolic approach of inclusiveness, fairness, justice, equity and respect to the rule of law for which the Government policies are known.