Obaseki budgets N320.35bn for 2023 fiscal year

Edo State governor, Godwin Obaseki has proposed a 2023 budget of N320.35billion with economy enablers and road infrastructure constituting the bulk of the fiscal year spend.

Obaseki, while presenting the 2023 Appropriation Bill to the Edo State House of Assembly on Wednesday for consideration and approval in Benin City, said the size of the budget, which represented an N69.3 percent increase from the N222billion budgeted for the year 2022, was due to inflation and devaluation of the local currency.

The governor said the budget tagged, “Budget of Resilience and Transformation”, has a capital expenditure estimate of N192billion and recurrent expenditure of N127.5billion, adding that it was informed by the need to build a resilient and sustainable foundation for the reform initiatives and programmes embarked on over the last six years.

He noted that the recurrent budget estimates are based on a $70 per barrel benchmark for crude oil and an average daily production of N1.69 million barrel per day as well as an increase in the state’s Internally Generated Revenue (IGR) to the tune of N60.4billion owing to the reforms undertaken in tax collection and land management activities.

According to him, “Our intention is to push for reforms and revenues in the built environment space. We are committed to boosting capital spending this year. To this end, we expect that the capital and recurrent expenditure ratio will be 60.2 per cent to 39.8 percent, respectively. This would reinvigorate the economy, providing the right impetus for the needed growth expected in the year”.

Read also: Fan Milk moves to reduce $1.5bn capital flight on dairy product

He said: “With changes in global dynamics and its effect on our economy, states, which must survive, will have to transform themselves structurally and change the way they operate. Partnerships, therefore, are key to resilience. Government does not have all the resources needed to engender growth and development which is required.

“However, partnerships with private sector players are therefore germane and expedient if we are to make progress. It is on this note that government seeks to enhance economic reforms in our process, stimulate economic prosperity and improve the ease of doing business so that we can continuously attract private capital to engender sustainable development,” Obaseki said.

The governor, therefore, projected a total revenue of N300billion for 2023, consisting of N144billion statutory allocation, N41.2billion Value Added Tax (VAT), capital receipts of N46.1billion, Internally Generated Revenue (IGR) of N60.4billion, and N4billion from grants and other sources while the balance will be sourced from financial institutions in the country.

He allocated N32.9billion to education; N30.2billion to health; N54.9billion to road infrastructure and transport; N20.5billion to public buildings; N7.2billion to electricity and energy; N5.4billion to agriculture while N56.1billion was proposed for Economy enablers involving investment in technology and youth empowerment.

“With several projects at the verge of completion in 2023, we hope to galvanize all actors and harness resources to increase the opportunities for our people to enhance productivity and expand economic base of Edo state. Public Private Partnerships will continue to dominate investment initiatives in the new year.

“Our strategic goal is to utilize manufacturing, technology, agriculture, arts culture and entertainments as the catalyst to promote sustained investment across all sectors of the Edo economy. As we drive for growth, we will continue to pursue policies and programs that will ensure fair and balanced access to education, healthcare and social protection in all the three senatorial districts of the state,” he added.

Receiving the appropriation bill, Marcus Onobun, the speaker of the House assured of timely consideration of the bill as well as collaboration with relevant stakeholders to deliver a budget that is exemplary.