Governor Dapo Abiodun of Ogun state, just like the immediate past Governor Ibikunle Amosun, on Tuesday retained a 60% capital expenditure benchmark when he presented N449.974 billion Ogun state fiscal estimates for 2020 before the State House of Assembly.
Governor presented N449.974 billion as the budget proposal for the year 2020 which is tagged, “Budget to Build Our Future Together” exactly 187 days he assumed governor of the state, focusing on capital projects and reinventing the National Social Investment Programmes in the state with the largest budgetary vote of N128.067 billion, representing 28% of the budget size.
Ogun state fiscal estimates proposed for 2020 fiscal year by Governor Abiodun has a total of N269.132 billion as capital expenditure, representing 60.31% which is a retention of 60% benchmark for the CAPEX initiated by the All Progressives Congress (APC) in the state, while a sum of N269.132 billion, representing 39.69% was budgeted for recurrent expenditure.
A close look of the 2020 Appropriation Bill shows that the fiscal estimates are based on five strategic pillars ISEYA – Infrastructure – N107.964 billion = 24%; Social Wellbeing and Welfare – N128.067 billion = 28%; Education – N91.804 billion = 20%; Youth Empowerment – N7.896 billion = 2%; Agriculture – N21.634 billion and Other expenses – N92.804 billion = 21%.
The proposed fiscal bill shows budget finance sources which include internally generated revenue (IGR) that stands at N255.946 billion, representing 57%; statutory allocation is N43.431 billion, representing 10%; expected revenue form VAT stands at N22.031 billion which represents 5%, while the capital and other receipts are N129.566 billion which represents 28%.
The budget which was presented before the Olakunle Oluomo-led State House of Assembly devised a Medium-Term Expenditure Framework (MTEF) with a three fiscal-year financial plan which projects 2.4% gross domestic growth of N2.99 trillion for 2020; N3.06 trillion for 2021 and N3.14 trillion for 2022, respectively.
The fiscal estimates project inflation rate at 10.2% in 2020; 8.49% for 2021 and 6.59% for 2022 respectively, just as the capital expenditure is retained at 60% benchmark, starting from 60% CAPEX ratio for 2020 as well as 65% and 70% ratio for 2021 and 2022 fiscal years respectively.
