Being a speech by the Governor of Ondo State, Arakunrin Oluwarotimi Odunayo Akeredolu,
SAN, CON, on the occasion of the presentation of 2023 Budget
Proposals to the State House Of Assembly on Monday, 5th December, 2022 .

PROTOCOL

I am much delighted to stand before this Honourable House today to present the 2023 Budget Proposals of our dear Sunshine State. This Budget represents the fiscal proposals for the third year of the second leg of our Administration, the APC-led government in the State.

 Mr. Speaker, distinguished Honourable Members, let me use this auspicious occasion to thank the good people of Ondo State for their unflinching belief, confidence, co-operation and support for our Administration. My appreciation knows no bounds for the abiding faith reposed in the Administration and its prosperity-driven initiatives, especially our extant development blueprint, christened the REDEEMED agenda.

 Mr. Speaker, let me also express my profound appreciation to the Honourable Members of this hallowed Chamber for your unwavering support and commitment to the development of our State and the well-being of our people.  I should put it on record for the umpteenth time that in your dealings with the Executive Arm of Government, you have eschewed petty grandstanding and self-seeking bickering which often characterise Executive-Legislative relationship in this clime. I have no doubt that,for the sake of our shared commitment to responsive governance,this cordial relationship will continue.

 Let me, once again, congratulate Mr. Speaker and Members of this hallowed Chamber for the recently commissioned newly renovated House of Assembly Complex. I cannot but commend our lawmakers for their patience, endurance and understanding while the renovation works lasted. It is a clear pointer to the unassailable character of members of the Ondo State House of Assembly.  What we can see and the testament we have received so far allude to the fact that the complex can now compare favourably with other Chambers globally.

REVIEW OF THE 2022 BUDGET

Mr. Speaker, Distinguished Honourable Members, the total projected Budget outlay for 2022 Fiscal year was N199,282,437,000.00 (One Hundred and Ninety-Nine Billion, Two Hundred and Eighty-Two Million, Four Hundred and Thirty-Seven Thousand) only.As at September 2022, the aggregate revenue inflow, from both Federation Accounts Allocation Committee (FAAC), State Independent Revenue and other sources was N110.445 billion representing only 73.9% of the total expected revenue for the period. This shows a shortfall of 26.1% which consequently had a limiting effect on our capacity to fully deliver on some of our key projects and programmes.  However, with the resources available to the State Government, we have continued to pursue our developmental agenda in areas of priority.Consequently, we have been able to record some modest achievements across board in the various thematic areas of the REDEEMED agenda and some of which are listed below:

i. Construction of more than 450km of roads across the State;

ii. Construction of over 238 blocks of classrooms;

iii. Provision of 16,874 sets of pupil’s furniture and 3,394 Teacher’s furniture;

iv. Strengthening of Amotekun and other security Agencies in the State through provision of operational vehicles and equipment;

v. empowerment of over 9,068 Youths through ONDEA;

vi. Rehabilitation of water supply schemes in Araromi Obu, Oke-Igbo, Oba-Akoko, Idoani, Okitipupa and Ilutitun;

 vii. Distribution of over One Million Cocoa seedlings to Cocoa farmers;

 viii. Completion of Ode-Erinje Transmission line, Omotosho-Epe-Ajah 330KV D/C Transmission line and Osogbo-Benin 330KV D/C line;

 ix. Regular payment of salaries to State Workers;

x. Provision of free maternal health care (Abiyamo/Solayo Scheme) for over 40,000 pregnant women and children; and

xi. Empowering of 48,761 under the ONDO-CARES Programme.

 OVERVIEW OF THE 2023 BUDGET

Mr. Speaker, Distinguished Honourable Members, before I delve into the details of the 2023 Budget proposals, I wish to commend your passion and timely effort in considering the 2023-2025 Medium Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP) as well as the passage of the 2022 Revised Appropriation Bill in response to the exigencies of deepening security, infrastructural development and to cater for the vulnerable, all in our bid to change the narratives and trajectories of our growth and development.

Mr. Speaker, having reasonably surmounted the COVID-19 scourge in our State, the 2023 Budget is not only laying emphasis on recuperative programmes but also widening the horizon of the State’s economic commanding heights for sustainable development and prosperity of our State and people. Therefore, the 2023 Budget is titled Budget of Shared Prosperity.

Mr. Speaker and Honourable Members, the 2023 Budget has been prepared on the basis of the inputs garnered during the Town Hall meetings with various stakeholders across the State and it is tailored towards achieving the REDEEMED agenda of our Administration which is also in tandem with the Sustainable Development Goals (SDGs).  The projects and programmes carefully selected therein cut across the critical areas of infrastructure and environment, education, health, social safety-net security, industrialisation, among others.

Mr. Speaker and Honourable Members, let me now proceed to present the highlights of the State 2023 Draft Estimates while the details will be laid before this Honourable House, shortly.

 REVENUE PROJECTION

Mr. Speaker, Honourable Members, ladies and gentlemen, we must recognize that revenue inflow from the Federation Accounts still constitutes the largest portion of the total collectible revenue for the State in the short run. Consequently, the projection of revenue in 2023 would largely be informed by the macro-economic assumptions contained in the MTEF and Fiscal Strategy Paper of the Federal Government which are:

Item

2023

2024

2025

National Inflation

17.16%

16.21%

17.21%

National Real GDP Growth

3.75%

3.30%

3.46%

Oil Price Benchmark

$70.00

$66.00

$62.00

Oil Production Benchmark (MBPD)

1.690

1.830

1.830

NGN:USD Exchange Rate (Benchmark)

435.57

435.92

437.57

 Considering these key parameters and assumptions, a total Budget of N272.736 Billion has been proposed for the 2023 fiscal year. The breakdown of the Revenue is as follows:

N​​​​%

i. Statutory Allocation​​- ​ 35,298,844, 990.86​   12.94

ii. Independent Revenue ​- ​ 32,000,632,000.00​   11.73

iii. VAT ​​​​-​  25,128,948,522.40    9.21

iv. Mineral Derivation​​- ​  18,499,522,348.336.78

v. Other FAAC Revenue​-​  25,085,000,000.00    9.20

vi. Grants ​​​​- ​  18,246,200,000.00    6.69

vii Other Capital Receipt​-​  24,692,191,121.41    9.06

viii Stabilization Fund​​-​  10,000,000,000.00    3.67

ix. Financing​​​- ​  83,784,300,000.00​  30.72

TOTAL​​​​=​272,735,638,983.00 100.00

 EXPENDITURE PROJECTION

On the expenditure side, Mr. Speaker, we are conscious of the need to strengthen our efforts at employment-generating initiatives and reflate the economy, appropriately. Therefore, the structure of the economy would require major reengineering so as to be able to allocate more funds to further step-up capital development. This we hope to achieve by the end of the 2023-2025 medium term such that, going forward, greater percentage of the Budget will continuously be allocated to capital development. In the meantime, the 2023 expenditure allocation is as follows:

A. Recurrent Expenditure:​​​Amount N’B​​ %

i. Salaries and Wages​​​-  46,177,653,360.00​​16.93

ii. Overheads​​​​-  24,049,918,783.00​​ 8.82

iii. Debt Repayment ​​​-  14,078,140,122.00​​ 5.16

iv. Grants and Contributions​​-  13,701,220,000.00​​ 5.02

v. Social Contributions and​​

Social Benefits​​​​-  13,145,400,000.00​​ 4.82

vi. Statutory Transfers:​​​-  18,072,005,868.00​​ 6.63

Total Recurrent Estimates  – 129,224,338,133.00  47.38

 B. Capital Expenditure:​​​

Total Capital Estimates​​​- 143,511,300,850.00​​52.62

TOTAL​​​​=272,735,638,983.00  100.00

 CONCLUSION

In conclusion, I want to say that in fulfilling the aims and objectives of this Budget,it is pertinent to pursue policy stance that will entrench efficient spending, curb waste, engender inclusivity, and enable excellent service delivery.  Notwithstanding the present climate of uncertainty, we are steadfast in our resolve to put the economy on the sustainable path to realize its full growth potential. By the grace of the Almighty God, we shall leave no stone unturned as we continue to build a strong, vibrant and resilient economy,powered by good governance and people-centered programmes.

 Mr. Speaker, in ending this speech,let me once again, appreciate you and your team for the atmosphere of peace and unity that exists between the Legislature and Executive which has facilitated the significant milestones so far attained by our Administration.

 On this note, Mr. Speaker, Honourable Members, ladies and gentlemen, it is my honour and privilege to lay before this Honourable House, the details of 2023 Budget Proposals and its Bill,for expeditious legislative consideration.

 Thank you all!

 God bless Ondo State!