On Tuesday, the Governor of Ondo State, Olusegun Mimiko, presented a N118.990 billion budget estimate to the State House of Assembly for the 2016 fiscal year. Governor Mimiko threatened to aggressively and independently drive up revenue from all government Ministries, Department and Agencies (MDAs) due to the current economic meltdown in the State.
SaharaReporters obtained a copy of the budget and can authoritatively report that the sectoral breakdown on the capital expenditure shows that debt repayment will cost N15.850 billion, or 31 percent of the total budget, followed by the Social Sector with N13.312 billion representing 26 percent of the total budget.
The budget copy also revealed that N11.061 billion, representing 22 percent of the budget, was earmarked for Environment & Regional Development while Economic received N8.505 billion, representing 17 percent of the budget, and Law & Justice received N0.298 billion representing 0.60 percent with Administration receiving N1.355 billion representing 2.8 percent of the budget.
A breakdown of the budget shows that out of the N118 billion proposed to the Ondo lawmakers, N68 billion was projected for recurrent expenditure while an estimated N51 billion was planned for capital expenditure.
SaharaReporters can authoritatively report that Tuesday’s presentation was the seventh budget Mr. Mimiko has presented to the Assembly lawmakers since his assumption of office as the Governor of the State.
Our correspondent analysis revealed that the 2016 budget amount represents a N13 billion reduction in the last year’s budget, which was N131 billion-with N76.7 billion proposed then for recurrent expenditure and N54.3 billion for capital expenditure.
In his presentation, Governor Mimiko said that the State revenue projections had been premised on the macroeconomic assumptions contained in the 2016-2018 fiscal strategy paper of the Federal Government (FG) of Nigeria
Mr. Mimiko added that the budget is based on a crude oil benchmark price of $38 per barrel with an average production of 2.200 million-barrels/per day with an inflation rate of 8.10 per cent and an exchange rate of N197 to a US dollar.
The Speaker of the State House of Assembly, Jumoke Akindele remarked that the “rubber stamp” lawmakers would ensure that the budget was given better consideration given the current economic challenges in the State and the country at large.
Budgetary documents can be found below.