Law News
Mimiko presents N130bn 2015 budget

The amount represents a N38 billion  reduction in last year’s budget, which was N168billion.

The breakdown of the budget shows a recurrent expenditure proposal of N77 billion, while capital projects received N53 billion.

In his presentation to the house, Mimiko said the reduction in the budget was as a result of the present economic realities.

According to him, even though N168 billion was expected as revenues last year, only N80.324 billion accrued to the state from all sources, representing 47.87 per cent of expected revenue.

He said the budget is based on crude oil benchmark of $65 per barrel with an average production of 2.278 million barrels per day.

The budget, he said, was also based on inflation rate of 11.91 per cent and an exchange rate of N184 to a dollar.

Mimiko said, “The projections indicate a sharp reduction of 23 per cent over last year’s budget of N168 billion.

“The decline in revenue, though awful in the face of expanding expenditure and the need to sustain the pace of development, is not unconnected with the prevailing economic realities in the country and the global economic downturn.”

He however assured that the state would ensure that it achieved the 2015 revenue target of N130 billion.

The governor noted that his administration had structured its expenditure priorities in the most practical terms to generate the highest mileage from every Naira spent .

He explained that the slight increase in the recurrent expenditure, which represents 7 per cent of the 2014 budget, was occasioned by the need to provide for promotions and incremental credit of civil servants as well as the proposed establishment of the University of Medical Sciences, Ondo.

He also said that a total of N800 million had been proposed for the conduct of local government elections in the state this year.

According to him, all legal impediments would soon be removed as a result of the recent political realignment in the state.

Further breakdown of the allocations showed that the completion of the Omotosho Power plant received the highest allocation of N2.4 billion, followed by  education, which received N2.235 billion, with N1.235 billion of the sum going to Caring Heart Mega Schools.

The proposed University of Medical Sciences will get N1 billion; the International Event Centre, popularly called the Akure Dome, also received N1 billion

Debt servicing, however, will gulp N13.755 billion, just as Ondo State Oil Producing Areas Development Commission will get N7.680 billion.

Mimiko emphasised that with the dwindling federal transfers on a daily basis, there was need to pay diligent attention to internal sources of revenue.

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