OGUN STATE 2012 BUDGET – A Preview

OGUN STATE 2012 BUDGET – A Preview

On the 29th of November, 2011, His Excellency, Senator Ibikunle Amosun presented the 2012 Budget tagged ‘Budget to Rebuild’ to the Ogun State House of Assembly. 

A breakdown of the Budget showed that for the 2012 fiscal year, the state government will spend Two Hundred Billion, Five Hundred and Forty-Nine Million, Nine Hundred and Eighty-Nine Thousand, Four Hundred Naira (N200, 549,989,400.00).

Out of this, One Hundred and Ten Billion, Eight Million, Six Hundred and Twenty-Four Thousand, Nine Hundred and Seventy-Four Naira, Eighty-Three Kobo (N110,008,624,974.83) will go to Capital Projects while Seventy Billion and Seventy-Three Million, Four Hundred and Sixty-Seven Thousand, Five Hundred and Ninety Naira, Ninety-Eight Kobo (N70,073,467,590.98) is for Recurrent Expenditure. Twenty Billion, Four Hundred and Sixty-Seven Million, Eight Hundred and Ninety-Six Thousand, Eight Hundred and Thirty-Four Naira, Eighteen Kobo (N20, 467,896,834.18) will be for Consolidated Revenue Fund Charges, Pension and Gratuities.

While 33% of the budget will be funded from internal sources, 67% will be funded from projected inflow from the Federation Account (35%) and Capital Receipts (32%). A further breakdown of the budget shows that 67% of the budget will be spent on the administration’s 5-cardinal program (Education, Rural & Infrastructural Development /Employment Generation, Housing & Urban Renewal, Healthcare and Agriculture/Industrialisation). Education takes the lion share of N42.4b, representing 20% of the entire budget, while Housing and Community Amenities will gulp N29.1b.

A detailed break-down of the capital projects looks like this;

2012 Ogun Capital Budget Break Down

SIA's 5-point agenda;

• Rural & Infrastructure Development/Employment Generation-32, 526, 318, 181.82-30%
• Affordable Housing & Urban Renewal-29, 149, 003, 450.00-26%
• Affordable Qualitative Education-13, 547, 722, 643.02-12%
• Efficient Health Care Delivery-7, 849, 613, 018.18-7%
• Agricultural Production/Industrialisation-6, 606, 745, 454.54-6%

Other Areas of Priorities;

• General Public Services-8, 401, 872, 590.91-8%
• Recreation, Culture and Religion-3, 928, 507, 272.73-4%
• Public Order and Safety-2, 223, 640, 909.09-2%
• Transportation-2, 092, 668, 181.82-2%
• Defence-1, 890, 909, 090.91-2%
• Economic Affairs-1, 378, 981, 909.09-1%
• Social Protection-412, 642, 272,.73-0%

Total ---110, 008, 624, 974.83-100%

CAPITAL EXPENDITURE BREAKDOWN –OUR CONCERN !

Although, the Recurrent figure of 90 Billion Naira is still very much on the high side, it is of less priority to us because this is just to take care of the salaries, emoluments, travels and expenses of both civil and public (politician) servants in the state.

Our main concern is the Capital Expenditure because this is the aspect with direct bearings on the people of the state.

The Capital Expenditure summary of the Ogun 2012 Budget started on page 14 of the Appropriation Act as passed by OGHA and assented to by the governor.

A quick glance will reveal some anomalies thus;

Sub Head     Page           Descriptions                                                 Appropriated Figure

10101          14                 Office of the Governor                               1 ,051, 979, 545.45

10104          14                 Contingencies                                              2, 405,714, 000.00

10202          14                 Ministry of Budget and Planning             1, 007, 866, 386.36

10301          14                 House of Assembly                                     1, 625, 000, 000.00

40206          15                 Ogun State Property and Inv. Corp.       1, 200, 454, 545.45

60302          16                 Housing Projects                                         1, 693, 181, 818.18

60401          16                 Bureau of Lands & Survey                         3, 034, 772, 727.27

60501          17                 Ogun State Water Corporation                12, 351, 900, 040.90

70204          17                 Primary Health Care Dev. Board                    59,130,000.00

90401          18                 Ministry of Education, Science & Tech     9, 446, 559,027. 27

Some figures earmarked above are outrageous and outlandish. The break-down of the specific capital projects to be embarked upon are missing. This shows that transparency and integrity are lacking.

Which capital project does the governor’s office want to use 1 billion naira for? 

What is ‘contingencies’ at a whopping 2 billion naira? 

Is the Ministry of Budget and Planning building a new office complex for 1 billion naira? 

We may excuse the House of Assembly perhaps their official residence needed renovation, Assembly Complex needs to be refurbished and of course, pool cars, office furniture and accessories were purchased. 1.2 billion for OPIC for which project again? 

Housing Projects for 1.6 billion naira? 

How many has been commissioned? 

Lands and Survey being ‘given’ 3 billion naira is clueless.

12 billion naira for Ogun State Water Corporation means all towns and villages in Ogun State now have water. The 59 million naira to the PHCDB is very small putting into cognizance the fact that this is a Board that is meant to initiate one of the major cardinal programmes of the SIA administration; Efficient Health Care Delivery.

We do not know what the Education ministry will use 9 billion naira for after all the main departments and sub heads like SUBEB, TESCOM, Tertiary Institutions e.t.c had been taken care of.

Basically, the Capital Budgets are poorly enumerated and itemized in the Ogun 2012 Budget.

Again, the Governor’s Budget speech and promises are in contrast with the details of the Budget. We shall be previewing the sector by sector analysis of the Ogun 2012 Budget in subsequent posts.

Ogun yi o ni b’aje o! 

Amin !

Sheriff Adeyemi