The Governor of Ondo State, Oluwarotimi Akeredolu on Monday presented a total sum of N190.23 billion budget for the 2019 fiscal year to the state House of Assembly.
The proposed budget exceeded that of the 2018 fiscal year with N19 billion which was pegged at N171 billion.
Of the N190.23 billion estimate, Akeredolu earmarked N82.179 billion for recurrent expenditure and N87.906 for capital expenditure.
According to the governor who tagged the proposed budget as “Budget of Advancement”, the bill was prepared based on the projections of the 2019-2021 Medium-Term Expenditure Framework (MTEF).
“Mr. Speaker, MTEF is one of the statutory provisions of the Ondo State Fiscal Responsibility Law (FRL) which this Honourable House passed in 2017.
“The Law makes it mandatory that every yearly budget must be prepared on the basis of the next three years projections of MTEF.
“Consequently, 2019 Budget is an offshoot of the 2019-2021 MTEF.
“We have used the 2018 Fiscal year to lay the foundation of the economic trajectory designed for the State. Most of the programmes and projects will crystalize in the 2019 Fiscal year.
“In the same vein, most of the major MOUs orchestrated through ONDIPA, inclusive of the Deep Sea Port are expected to fully blossom in 2019. It is in view of this that the 2019 Budget has been aptly tagged “the Budget of Advancement.”
Presenting the bill, which is the second, since Akeredolu assumed office in February 2017, the Governor said the proposal captured the essence of his administration’s blueprint.
“Mr Speaker, you will recall I informed this honourable House here last year that we had engaged some revenue consultants to complement the existing efforts in revenue generation and to overcome the challenges posed by inadequate revenue.
“I am happy to inform you that the effort has been yielding a positive result ranging from appreciable blockade of some revenue leakages to increase our revenue base, a situation which has led to the State generating an average monthly IGR of N1.263 billion as against N905m monthly average recorded in 2017.
“Yes, we are not there yet, but with the combined efforts of the consultants and the vibrant autonomous Board of Internal Revenue, as well as the various financial reforms being carried out by this Administration, we shall achieve the desired result in no distant time.
“Despite the improvement recorded in IR, revenue from Federation Account still contributes the larger part of total revenue accruing to the State.
“The same scenario will still play out in 2019 fiscal year.”
While appealing for thorough scrutiny of the budget as well as accelerated passage, the Governor emphasized that his administration will pursue activities targeted at encouraging productivities and creation of real opportunity for the people in the next fiscal year.
“Mr Speaker, this Budget, placed before you today, displays our determination to confront our socio-economic problems in our unique way. It urges us to stand tall and take charge of our lives. It encourages us to look behind the present clouds of economic difficulties to see the silver lining in the skies,” he said
The Speaker of the state House of Assembly, Rt. Hon. Bamidele Oleyelogun, in his remarks, described the budget as life-touching.
He promised that the House would give expeditious and necessary approval, adding that the House would support efforts aimed at implementing the budget for the benefit of the people of the state.