…2012 budget: Ogun earmarks 55% for capital projects
By Our reporter
Friday January 27, 2012
The Ogun State is to spend 55 per cent of its budget in 2012 on capital projects. This represents an 18 per cent increase in the allocation for the previous year.
The state commissioner for Budget and Planning, Mrs. Oluwande Muoyo gave the breakdown during a breakdown session on the budget to major stakeholders in the state capital, Abeokuta.
For the 2012 fiscal year, the state government will spend N200b. Out of this, N110 billion will go to capital projects while N90 billion is for recurrent expenditure. The commissioner explained that the increase in the allocation for capital projects was to allow for massive Infrastructural development, which is one of the five cardinal programmes of the Amosun administration.
“The CAPEX/Recurrent Ratio for 2012 is 55:45 as against 37:63 in 2011.
“This is to pursue our objective of aggressively rebuilding Ogun State through priority for investment spending,” she said. While 33 per cent of the budget will be funded from internal sources, 67 per cent will be funded from projected inflow from the Federation Account (35 per cent) and capital receipts (32 per cent)
A further breakdown of the budget shows that 67 per cent of the budget will be spent on the administration’s five-cardinal program, (Education, Rural and Infrastructural Development/Employment Generation, Housing and Urban Renewal, Healthcare and Agriculture/Industralisatio). Education takes the lion share of N42.4 billion, representing 20 per cent of the entire budget, while Housing and Community Amenities will gulp N29.1 billion
The commissioner noted that the state government intends to pursue an aggressive Internally Generated Revenue for 2012, with an expected IGR of over N100 billion. This, the government expects to achieve by widening its tax net, especially the residency rule, improved collection mechanism and blockages of leakages in the system.