Ondo State Governor, Dr. Olusegun Mimiko, on Tuesday presented a budget of N130 billion to the state House of Assembly for consideration for 2015.
The budget tagged: ‘Caring Heart Budget VI’, was N30 billion or 23 per cent lower than the 2014 budget of N168 billion blaming the reduction and the dwindling revenue from the Federation Account (FA) due to the decline in the price of crude oil in the international market.
Giving the breakdown of the budget, the governor pointed out that it is made up of N77 billion or 51 per cent recurrent expenditure or N53 billion or 49 per cent Capital Expenditure.
Reviewing the 2014 budget, Mimiko said there were disruptions to the projections and the financial capabilities of the state.
He said the total revenue receipts, which accrued to the state from all sources as at November, stood at N80.32 billion or 47.81 per cent of expected revenue.
Mimiko said the recurrent expenditure had an increase of seven per cent over the last year’s expenditure due to the need to provide for promotions and the incremental credit of civil servants as well as the proposed establishment of the University of Medical Sciences, Ondo.
He said the university would take off this year just as the state’s infrastructural facilities are increasing on a daily basis, which necessitated the need to provide substantial amount for their maintenance.
The governor said despite the dwindling revenue due to the fall in the price of crude oil, the state would intensify efforts at ensuring that the revenue target for 2015 especially in the area of independent revenue is within control. Giving the breakdown of the expected revenue, the governor said a sum of N38 billion is being expected, independent revenue N15 billion; Value Added Tax N10 billion; Mineral Derivation Fund and bond of N23 billion among others.
On the capital expenditure, Mimiko said the key focus this year shall be to complete on-going projects and specifically mentioned the dualisation Fiwasaye/Obaile/Airport Road, Ikare-Ajowa Road, Itanla-Ademulegun Roundabout Road and other road projects spread across the state.
The governor said the administration has prioritised knowledge and education in the last six years stating that the newly approved Ondo State University of Medical Sciences, Ondo would be a 21st century university.
Mimiko commended the harmonious relationship among various arms of government and particularly lauded the State House of Assembly for partnering the executive.