2021 budget: Ogun will Rely more on IGR, says Abiodun
Ogun State Governor Dapo Abiodun says his administration will next year rely more on the Internally Generated Revenue (IGR) as its primary source of financing its budget before any other source.
His administration, the governor said, would be mindful of the need to avoid unnecessary tax burden on the citizens.
Prince Abiodun, who made this known at a virtual consultative meeting with the representatives of the people of Ogun East Senatorial District in his office at Oke-Mosan, Abeokuta on the 2021-2023 Medium Term Expenditure Framework (MTEF) and 2021 budget, urged the people to support the current administration by discharging their civic duties.
“Despite the steep decline in revenue from the Federation Account, we shall rely more on our IGR from the Ogun State Internal Revenue Service (OGIRS) and other revenue sources. In this regard, we have strengthened the OGIRS, including recent appointment of a seasoned professional as the chairman.
“While being mindful of the need to avoid unnecessary tax burden on our citizens, we appeal to them to continue to support us by discharging their civic duties.”
in our joint task of building the state of our future together. We shall continue to give utmost priority to capital project investments in education, health and infrastructure sectors,” he said.
The governor, who noted that his administration would continue to sustain payment of salaries, pensions and gratuities within limited resources, said his administration would continue to carry out downward review of overhead expenses at reasonable percentage against revenue generation prospects of Ministries, Departments and Agencies.
Abiodun, while noting that the recent payment of the new minimum wage was in line with the agreement reached with labour, urged labour unions to be considerate in their demands at a time government was also struggling with finances.
He said the government will prioritise education, health, agriculture and road infrastructure, as it prepares for next year’s budget.
Abiodun pointed out that his administration would be proactive in the coming year by latching on this years’ experience to improve on service delivery, revenue drive and public private partnership.
He decried the negative impact of the COVID-19 to the economy, saying the current year’s budget was reviewed downward from N450billion to N280billion in consonance with the economic realities in the wake of the pandemic.
The governor added that 20 per cent of the 2020 revised appropriation was, understandably, allocated to the health sector.
“To give life to businesses, reliefs were given to business owners as part of palliative measures to assist them cope with the economic slide and ensure business continuity. These relief packages include six-month extension of the 2019 income tax returns deadline for self-employed residents from March 31, 2020 to September 30, 2020.
“We also granted an eight-month extension of filing of 2019 annual PAYE returns by PAYE operators/tax agents from January 31, 2020 to September 30, as well as complete waiver of interest and penalty for late filing for the extension period,” the governor said.
He said the hosting of the town hall meeting was a symbolic approach of inclusiveness, fairness, justice, equity and respect to the rule of law for which the government policies were known.
Prince Abiodun, while enumerating some of the roads constructed by his administration, said they include Awa – Iloaporu-Ibadan Express Road, Hospital Road, Sagamu, Bright Fashion Baruwa street, Sagamu, Ijebu Ode-Epe, Sagamu-Ore Interchange Flyover in Ijebu-Ode-Odogbolu LG, Molipa -Fusigboye -Ojofa Street, among others, adding that hospitals, especially primary health care centres, schools and other infrastructure projects were also given due attention.
“We will continue to sustain payment of salaries, pensions and gratuities within the limited resources. It is instructive that we have begun the payment of new minimum wage in October, to demonstrate our commitment to workers’ welfare. We expect them in turn to reciprocate this gesture with improved productivity and service delivery,” he said.
While pledging to carry out downward review of overhead expenses with reasonable percentage against revenue generation prospects of each MDA in the state, the governor said the gathering would cross-fertilise ideas for the preparation of a more viable Year 2021 budget that would ensure individual prosperity and improved economy of the state.
He advised the people to contribute and take maximum advantage of the platform to express their views, noting that their comments, recommendations, proposals and feedback would be considered for the preparation of the Year 2021 budget.
The Commissioner for Budget Planning, Mr. Olaolu Olabimtan, said the aim of the administration was to eliminate poverty.
He lauded the people for their valuable support, which has led to tremendous improvement on various sectors.
The Commissioner for Finance and Chief Economic Adviser to the Governor, Mr. Dapo Okubadejo, described “this year as the most challenging on the economy of the state, noting that the government would look inward for quick recovery of all sectors.”
The Chairman, Governor’s Elders Advisory Council, Chief Oluneye Okuboyejo, while calling on the state government to help farmers in the Ogun East Senatorial District on issues relating to land ownership and encroachment, said the issues had made it difficult for farmers in the area to think of expanding their farms.
“The government is doing well in the area of agriculture, the problem of land ownership for agriculture is a key issue. in Eriwe and all the farms we have around the local government, we have problems of land ownership because our farmers want to expand, even where we exist, encroachment is not helping the stakeholders at all, help us to solve them,” he said. (NATIONS)