The state Commissioner for Budget and Economic Planning, Musibau Babatunde, gave the breakdown of the budget estimates in a parley with civil society organisations.
He said, “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.”
He added that the budget would determine the destiny of the state in the next fiscal year, adding that highlight of the budget is adequately captured to reflect the governor’s Roadmap for Sustainable Development 2023-2027 and the Sustainable Action for Economic Recovery programme that followed the subsidy removal and exchange rate unification.
Babatunde further said 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 noted, however, 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 commissioner used the opportunity to highlight the revenue projections in the budget draft, saying the 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 had 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.
Babatunde, however, gave an assurance that there would be control and enforcement on spending limits to ensure that a sound budgetary system is put in place to include aggregate fiscal discipline, efficiency and effective spending of the budget.
Earlier, the Permanent Secretary, Ministry of Budget and Economy Planning, Sunday Ojelabi, said the budget breakdown was necessary so as to involve all stakeholders on the implementation of the 2024 Budget.
