2018 budget: Akeredolu presents N171.2bn to Ondo Assembly

Ondo state Governor, Mr Rotimi Akeredolu, on Friday, presented the 2018 Appropriation Bill of N171.2billion to the state House of Assembly for consideration and approval, which is about N1 billion higher to last year budget.

A breakdown of the budget estimate showed that the sum of N81.521 billion would be spent on recurrent expenditure while N68.09 billion would be spent on Capital expenditure.

Presenting the budget estimate,  which was tagged “Budget of Progress” which was the first in his administration, the governor explained that the 2018 budget was designed to achieve stability, fiscal re-prioritisation and consolidation to create the base for sustainable growth and development .

Akeredolu said the 2018 budget estimates will focus on rebuilding the state’s economy through prioritised investment ion infrastructural facilities and agriculture related activities.

Akeredolu said a total of N25 billion is expected from the statutory allocation, N18 billion from independent revenue while N12 billion is expected from the Value Added Tax.

Also, N11 billion from development partners , N15billion from mineral derivation fund,  N10 billion as refund spent on federal government projects and N31.2 billion as loans and leases.

He informed that the projection of revenue in the year 2018 would largely be informed by some major macro-economic assumptions contained in the MTEF and Fiscal Strategy Paper of the Federal Government.

The governor listed the assumption to include the GDP growth, Crude oil price and the exchange rate, saying
“considering these key parameters and assumptions, it is envisaged that revenue will increase just marginally in 2018 compared to 2017 actual figures.”

He said the budget reflects the collective aspiration of the people of the state, after having consulted widely with a view to incorporating the input of all stakeholders.

According to him, his administration will pursue activities targeted at encouraging productivities and creation of real opportunity for the people in the next fiscal year.

The governor,  called on the state Assembly to give the budget realistic scrutiny before approval, as he praised the House for passing into law all the Public Financial Management law which had been pending before the House for six years.

He said: “The 2018 budget is designed to achieve stability, fiscal reprioritization and consolidation to create the base for sustainable growth and development.

“It is focused on reversing the growth of debt, unsustainable deficits and the burden of interest payments which is almost unsustainable.

“The 2018 budget estimates will focus on rebuilding the state’s economy through prioritized investment on infrastructural facility and agriculture-related activities.”

The governor consequently listed the objectives for the 2018 budget to include intensifying efforts on independent revenue initiatives, massive infrastructural development, wealth creation through empowerment of youths, artisans, farmers and market women; and enhancing the community development through improved collaboration with communities, among others.

On the revenue projection for the 2018, Akeredolu said his administration was mindful of the challenges posed by inadequate revenue to accomplish the budget’s objective, but stated that he had commissioned some consultants to complement the existing efforts on revenue generation and collection.

He said: “The expected increase in the contribution of independent revenue to total revenue cannot be achieved in a day and as such would be gradual. Hence, revenue inflow from the Federation Account will still contribute the larger portion of the total collectible revenue for the state.”

The Speaker of the state House of Assembly, Rt Hon David Oleyelogun, described the budget as life-touching document and promised the governor that the budget  would be given expeditious and necessary approval.

He stated that the House would support efforts aimed at implementing the budget for the benefit of the people of the state.