Amosun Presents N200bn Budget, Affordable Housing & Urban Renewal To Gulp N26.567billion

The Ogun State governor, Ibikunle Amosun, on Tuesday presented a budget proposal of N200.3 billion to the state House of Assembly for the 2016 fiscal year.

He said the budget sum would be judiciously used to execute his administration’s five cardinal programmes, stating further that while education would gulp N40.170billion, representing 20.06 per cent, N14.346billion (7.16per cent) would be spent on healthcare delivery in the 2016 budget.

Similarly, the governor disclosed that the sum of N10.167billion (5.08per cent) would be allocated to Agricultural Production/Industrialization. Affordable Housing and Urban Renewal would gulp N26.567billion, representing 13.27per cent, he added.

Rural and Infrastructural Development/Employment Generation would be allocated N31.048billion (15.50 per cent) while other sectors would gulp N77.973billion, representing 38.93 per cent.

He also dissociated himself from the proposed plans by state governors to slash the N18, 000 minimum currently paid to workers across the country.

The budget, tagged “Budget of Optimisation”, is N10billion (4.79 per cent) less than the 2015 budget put at N210.35billion.

The governor, while presenting the 2016 Appropriation Bill to the state legislature for its scrutiny and passage, described the budget as a reflection of his administration’s resolve to minimize costs and maximize capacity to generate revenues.

He explained that the budget was expected to be financed largely from Internally Generated Revenue of N108billion (53.93%), Federation Account of N42billion (29.97per cent), External Loans of N40.27billion (20.11 per cent) and Grants of N10billion, representing 4.99 per cent.

The governor, while analysing the proposed budget, disclosed that the expenditure would comprise a capital expenditure of N99.29billion (49.6 per cent) and Recurrent Expenditure of N100.98billion (50.4per cent).

“We placed great emphasis on capital expenditure during our first term, in line with our development objectives. Our emphasis has now shifted a little and the budget this year is balanced between capital and recurrent expenditure,” he said.

“This budget mix will support both the maintenance of existing infrastructure and allow the continued execution of more capital projects.”

Speaking on the proposed reduction of minimum wage by some of his colleagues, Gov. Amosun said despite the financial challenges confronting the state, his administration would not be a party to the planned reduction of the N18, 000 minimum wage.

“I am not part of any move to say we can’t pay 18, 000 minimum wage to our workers and in any case, what we did when we came in in August 2011, I probably was the only person that didn’t only limit it to N18, 000 but N18, 250 or so,” the governor said. “If I didn’t then, the day we have enough money and we generate enough revenue, I will even move mine to N20, 000 or even N25, 000.”

“But for now, the N18, 250 we are paying, I will not subscribe to anybody saying we should reduce it or that they can’t pay, I am not part of those that said that. For me, we should continue to struggle to pay the minimum wage of 18, 000 Naira.

“For us in Ogun State, we pay N18, 250 and I have said it several times that there is no state that pays higher, we pay the highest in Ogun State,” Mr. Amosun said.