Ondo gives breakdown of 2021 budget
• Akeredolu to embark on 25 key capital projects
The Ondo State Commissioner for Economic Planning and Budget, Mr Emmanuel Igbasan, has, on Thursday, broken down the proposed 2021 budget with infrastructural development taking the largest chunk of the budget.
Igbadun while giving the analysis of the budget tagged “Budget of Hope” put the total budget at N174.873b, with a provision of N69.915b for a capital project, N79.084bn for recurrent expenditure while N21.241bn and N13. 633 for statutory transfer and debt repayment respectively.
Igbasan explained that the main focus of the 2021 budget is aimed at human capital development, stimulate economic development, expand the fiscal space and entrench good governance.
Speaking on the recurrent expenditure breakdown, Igbasan explained that there was a slight increase of 5.4 per cent in the allocation in 2021 over the last year figure of N75. 022b saying this is to cater for the ameliorative provisions for COVID -19 relief and the salary arrears of workers.
He said: “In order to maintain and sustain all the laudable capital projects being put in place by the present administration, adequate provision was made for maintenance recurrent expenditure in 2021 budget.
“In personnel cost, the sum of N42. 228bn which represents 53.4 per cent of the total recurrent vote has been earmarked for personnel cost for the year 2021 budget. This will take care of promotion, annual increment and salary arrears that may be paid in the course of the year.”
Analysing the sectoral breakdown, Igbasan explains that 87.5bn which represents 50.1 per cent was allocated for the Economic sector, 11.3 per cent for Administration sector, law and justice, 2.7 per cent while social sector and the regional sector was allocated with 33 and 2.6 per cent respectively.
He said: “As a matter of deliberate policy measure, the education sector was given the much-desired attention, to enhance the human capital capacity in the state, to this end, it was given the highest allocation in terms of new projects.
“However, because of the avalanche of on-going infrastructure projects and the need to pay contractors as obligations fall due, the total allocation to infrastructure remains the highest at 21.19 per cent.
“The health sector received the next higher allocation to enable the state to contend with their rampaging COVID -19 pandemic and other emerging health issues.”
Some of the key capital projects to be carried out with the 2021 budget include rehabilitation construction of state highways, provision of security hardware, the establishment of the cancer treatment centre, renovation of schools, Kamomi Aketi Accelerated water scheme, scholarship and bursary awards, purchasing of medical equipment among others.
Speaking on grants and contribution, the commissioner said a total of N9.558bN or 12.1 per cent of recurrent expenditure has been set aside to take care of the Personnel cost of Pqrasatals and tertiary institutions would generate internal revenue to augment their expenses while the grant will complement personnel-related costs.
He also disclosed that a total of N10.9bN which represents 13.8 per cent of the recurrent expenditure has been set aside to take care of pensions, gratuities of pensioners, payment of benefits to past governors and deputy governors.
Igbasan said: “The 2021 fiscal year incidentally heralds the commencement of the second term of this administration led by Governor Rotimi Akeredolu and the budget is intended to help us realise our collective dreams and aspirations for the state while working in partnership with the private sector.
“It is our belief that the full and proper implementation of the provisions of this budget will lead us towards becoming a society that is self-reliant and less dependent on statutory transfers from the federation account.
“The achievements so far recorded by this administration, despite our lean resources, could not have been possible without the help of Almighty God.”