The 2024 Budget proposal of the Oyo state government has been broken down and explained for public understanding. TheWest newspaper reports that the state governor, Engr Seyi Makinde had earlier presented a N434.2billion proposal to the state house of Assembly.
While presenting the breakdown at a parley with Civil Society Organisations and members of the press on Friday, the state’s Commissioner for Budget and Economic Planning, Musibau Adetunji Babatunde, said the 2024 Budget was prepared against the backdrop of continuing global and national economic challenges.
Prof. Babatunde added that the government would execute the budget to bring about sustainable economic recovery in the state.
His words: “The proposed budget reflects the economic recovery plan of the present administration towards addressing the current economic challenges and fast track economic recovery.
“The budget indicates the commitment of the administration to economic reforms necessary for creating opportunities towards achieving economic recovery and also reflects government desires on sectoral allocations to reflate the economy, unlock private investment, stimulate effective demand, accelerate economic growth and achieve sustainable development.”
According to the Professor of Economics, the budget is designed to reflect the governor Makinde’s Roadmap for Sustainable Development 2023-2027 and the Sustainable Action for Economic Recovery (SAfER) programme that followed the subsidy removal and exchange rate unification.
The commissioner revealed that, the estimate for recurrent expenditure in the 2024 Budget proposal stands at N211,884,445,738.94, representing 48.80 per cent of the budget, while the capital expenditure of N222,337,320,199.85 represents 51.20 per cent of the budget.
He explained that the percentage of the recurrent expenditure estimate was high because it had been designed to capture the monthly wage award of N25,000 to civil servants and N15,000 to pensioners, which increased the state’s wage by an additional N2.8billion in its first month of payment and is expected to run for six months.
He added, that the 2024 Budget would focus more on ongoing capital projects and programmes that would boost human capital, unlock the state’s economic potential through agriculture and agribusiness value chain, tourism and solid minerals development, as well as promotion of Public Private Partnership, among others.
The sectoral analysis of the proposed budget showed the government’s commitment to the economic recovery of the state, as the social and economic sectors, which comprise education, health, youth and sports, culture and tourism, agriculture, works and infrastructure and finance received the largest allocations.
Prof Babatunde also used the opportunity to highlight the revenue projections in the budget draft, stating that the state government looks forward to earning N86 billion in statutory allocations, N71.5 billion in Value Added Tax, N10 billion in Excess Crude, N36.3 billion in capital receipts, among others.
He added that the government has projected N72 billion as the Internally Generated Revenue for the year 2024 at the rate of N6 billion monthly, noting, however, that residents of the states should not exercise fears over tax increment.
Other government officials who joined Professor Babatunde in the budget analysis included the Executive Assistant to the Governor on Finance, Budget and Economic Planning, Alhaji Gafar Bello; Special Adviser, Budget and Economic Planning, Hon. Simeon Oyeleke; and Director of Admin and Supplies in the Ministry, Alhaji H.A. Bello, among others.
