Now, the Federal Government has opted for another debt stock as the nation plans to fund the 2021 budget deficit with N4.28 trillion new borrowings and the new borrowing figures represent about a third of the proposed 2021 budget. For some states, which have been plunged into unprecedented debt by previous administrations, this may not be an option to go for loans to finance those activities of their governments.
In Ogun State, at least, the signs of what to come have begun to manifest on Wednesday, 2nd December 2020 when the State Governor, Prince Dapo Abiodun, presented the 2021 Budget to the State House of Assembly. It is obvious that the Ogun State Government did not deceive itself over what the financial environment would look like in 2021; so it embarks upon its completion of major massive road construction abandoned by the previous administration, as well as the strengthening of monitoring and evaluation of the projects.
Thus, the governor, working closely with appropriate committees of the House of Assembly in preparing the budget, showed that he did not set out to deceive the people of the state. The budget, christened ‘’Budget of Recovery and Sustainability,’’ has a total estimate of N339 billion which was N58 billion above of 2020 budget, after it was reviewed from the initial N450 billion approved by the State House of Assembly in the wake of the COVID-19 pandemic.
Abiodun chose not to play to the gallery; Ogun State is one of those states in the country where the culture of paying tax is taboo and almost alien to the people. The government has looked inwards and is thinking out of the box to satisfy its people. The contents of the 2021 Appropriation Bill clearly show that this is exactly what the Abiodun-led administration has done.
Among the objectives of the budget were; leveraging technology and automation, as well as more effective monitoring of Internally Generated Revenue (IGR), it is also aimed at addressing revenue leakages and redirecting scarce resources to the poor and vulnerable, it will also target capacity development, inclusiveness of all Ministries, Departments, and Agencies IGR growth drive, diversification of the economy from Federation Account Allocation-dependent to the exploitation of our natural endowments and widening of the tax base for the socio-economic development of the state and exploitation of raw materials (solid minerals).
It is our prayer that the desire of the current administration in the state not to give the people a false sense of financial security will translate to expected results and that the people key into the current economic realities for government to serve them better. And it is our collective responsibility to wish the governor, House of Assembly members, cabinet members, civil servants, public servants, and the entire citizens of the state well for the well-deserved ‘’Budget of Recovery and Sustainability’’ and the best of this wonderful glorious year ahead.
Adémólá Òrúnbon, a journalist and public affairs analyst, wrote in from Federal Housing Estate, Olomore, Abeokuta, Ogun State.
