Nigeria Homepage: Ogun earmarks 55% of budget for capital projects

Ogun earmarks 55% of budget for capital projects
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The Nation on 27/01/2012 18:15:00

In a bid to fast-track infrastructural development in Ogun state, the government
has earmarked 55 per cent of its budget in 2012 for capital projects. This
represents an 18 per cent increase over the previous year’s allocation.
The state commissioner for Budget and Planning, Mrs. Oluwande Muoyo disclosed
this yesterday during the breakdown session on the budget to major stakeholders
in the state capital, Abeokuta.
For the 2012 fiscal year, she  said the state government will spend N200billion.
Out of this, capital projects will gulp N110billion while N90billion 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, 67per cent
will be funded from projected inflow from the Federation Account (35per cent)
and capital receipts (32per cent).
A further breakdown of the budget shows that 67per cent of the budget will be
spent on the administration’s 5-cardinal  programme (education, rural &
infrastructural development /employment   generation, housing & urban renewal,
healthcare and agriculture/industralisation.)
Education takes the lion share of N42.4billion, representing 20 per cent of the
entire budget, while housing and community amenities will gulp N29.1billion.
The commissioner noted that the state government intends to pursue an aggressive
Internally Generated Revenue for 2012, with an expected IGR of over N100billion.
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.