Governor Seyi Makinde of Oyo State, Monday, November 23, 2020, presented a total of two hundred and sixty-six billion, six hundred and forty-four million, two hundred and seventy -three thousand, three hundred and five naira, four kobo (N266,644,273,305.04) for the 2021 fiscal year. The budget presented was higher than the 2020 budget of ₦208.8 billion by ₦57.8 Billion; while the 2020 budget was ₦77 billion lower than the ₦285.2 billion 2019 budget presented in 2018 and the 2019 budget was lower than the ₦267.4 billion budgeted for 2018 in year 2017 by former Governor Abiola Ajimobi.
Oyo State Appropriation Bills (Budget) between 2018 – 2021.
Year 2018 – The budget submitted for consideration and approval of the legislature by Senator Abiola Ajimobi stood at ₦267,436,357,912.19. The 2018 budget, which the governor christened, ‘Budget of Stabilisation’, was about ₦60.4 Billion higher than the 2017 budget for the State.
On Thursday, May 1, 2018, the State House of Assembly passed the 2018 Appropriation bill of ₦271,731,742,260.31 into law. The approved sum is an addition of ₦4,295,384,348.02 to the initial sum of ₦267,436,357,912.19 presented by Governor Abiola Ajimobi on December 14, 2017 and the approved sum covers a recurrent expenditure of ₦121,789,745,679.69 and capital expenditure of ₦149,941,996,580.61.
Year 2019 – Senator Abiola Ajimobi submitted a ₦285 billion budget of transition to the State House of Assembly. The appropriation bill christened, ‘Budget of Sustainability,’ had ₦163.47 billion (57.36 per cent) as capital expenditure and ₦121.53 billion (42.64 per cent) as recurrent expenditure. But on September 4, 2019, the elected Governor in the 2019 Governorship Elections, Engr Seyi Makinde signed a 2019 Appropriation Review and Finance Bill, a revised budget of ₦182 billion for the State, saying the initial ₦285 billion 2019 budget presented to the house of assembly was unrealistic.
Year 2020 – Governor Makinde presented a ₦208,802,972,878 billion Appropriation Bill for the 2020 fiscal year to the State House of Assembly. The budget presented by the State Governor was ₦77 billion lower than the ₦285.2 billion 2019 budget presented in 2018 by his predecessor, Senator Abiola Ajimobi.
The total budget proposal had ₦100,142,690,046 earmarked for capital expenditure.
On July 15, 2020, the State Governor sought the approval of the State House of Assembly for downward review of the 2020 fiscal budget from ₦208.8 billion to ₦169.97 billion amid COVID-19 pandemic. The proposed reviewed budget had ₦104,982,971,570 earmarked for recurrent expenditure, while ₦64,992,791,160 was voted for capital expenditure..
Year 2021 – On November, 2020, Governor Makinde presented a Budget proposal of ₦266,644,273,305.04. This sum represents a 53.16 percent increase over the 2020 revised budget.
He explained that the recurrent expenditure in the 2021 Budget Proposal stands at ₦136,262,990,009.41, while the capital expenditure is ₦130,381,283,295.63.
Sectors prioritised in the State’s Appropriation Bills between 2018 to 2021.
The year 2018 budget of former Governor Abiola Ajimobi focused on:
- Economic Sector ₦85.390 billion (57.29per cent).
- Social Services Sector ₦54.280 billion (36.42 per cent ).
- Law and Justice Sector ₦0.517 billion (0.35per cent).
- General Administration Sector ₦8.860 billion (5.94 per cent).
According to former Governor Abiola Ajimobi, the structure of the 2018 budgetary proposal reflects the priority the Government accorded the various sectors in terms of their expected developmental effects.
For the year 2019, former Governor Abiola Ajimobi’s budget focused on:
- Economic Sectors made 61.5 per cent
- Social Sectors 30.19 per cent of the total ₦163.47 capital expenditure in the 2019 Appropriation bill
In year 2020, the budget of Governor Seyi Makinde focused on:
- Works with the highest sectoral allocation in the 2020 fiscal year’s budget at 23.93 percent.
- Education Sector came a close second with a total allocation of 22.37 per cent of the budget.
- Health Sector received 5.18 percent in the total budget proposal for year 2020,
- Agricultural Sector received 4.43 percent of the budget
While the year 2021 budget of Governor Seyi Makinde has been highlighted to focus on:
- The larger share of ₦56.3 Billion has been earmarked to the Education Sector. Engr Makinde explains that this is because his administration considers education as the only way out of poverty.
- The Agriculture Sector will receive an allocation of ₦9.5 billion. The Governor stated that his administration’s plan to grow the State’s economy through agribusiness remains well on course.
- The sum of ₦13.2 Billion was earmarked to the Health Sector.
- The sum of ₦266.6 Million has been earmarked for the Security Sector.
These budget analyses explained the decrease and increase in each fiscal year, as well as the yearly sector of high interest to each Administrator and administration.
This research story was supported by the US Embassy via the ATUPA fellowship by Civic Hive.