The Ondo state government has earmarked N44.047 billion for the payment of Salaries and Wages this year 2022, while a total of N10.036 billion is set aside to take care for the salaries of parastatals and Tertiary Institutions across the State.
The budget for the salaries and wages will now be put at over N54billion.
Speaking at the approved 2022 budget analysis of the state in Akure on Monday, the Commissioner for Economic Planning and Budget, Pastor Emmanuel Igbasan, flanked by the Commissioner for Finance, Hon Wale Akinterinwa and other top government’s functionaries, noted that the sum represents 22.10% of N86.385 billion Recurrent Expenditure of this year’s budget.
Igbasan said Covid-19 pandemic which had negatively affected global economic and hinders the state government’s efforts at paying salaries as and when due.
The Commissioner noted that “the sum of N44.047 billion or 22.10% of total recurrent vote has been earmarked for salaries and wages for the year 2022 Budget. This represents a 4.31% increase over the 2021 provision of #42.228 billion.
“This will take care of promotion, annual increments and salary arrears that might be paid in the course of the year.
“Grants and Contribution: Under this vote, a total of N10.036 billion or 5.04% of recurrent expenditure has been set aside to take care of the salaries of parastatals and Tertiary Institutions across the State.
“It is expected that Tertiary Institutions will generate Internal Revenue to augment their expenses while the grant will complement personnel related costs.
“Overhead Costs: The State wholly adopted the National Chart of Accounts in preparing the 2022 Budget.
Igbasan noted “to deliver more dividends of democracy for the people of Ondo State, Governor Oluwarotimi Akeredolu, had reiterated the need for the people to support government initiatives through the payment of taxes.
He noted that the poor oil performance and outbreak of COVID-19 pandemic in 2020 have direct negative consequences on the economy and revenue inflow to the state and nation at large.
“Meanwhile, the 2022 Budget has a N199b with N85.9b earmarked for capital projects while N86.3b is for recurrent expenditures. N13b and N13.8b is for statutory transfers and debt repayment respectively.
Igbasan, said “even though the coronavirus pandemic may not kill as many people in Africa as it is doing elsewhere, the greatest challenge that stares everyone of us in the fact is the attendant economic impact.”
He lamented that it manifests in reduced productivity and dwindling resources as currently experienced all over the nation.
Igbasan, however, noted that the 2022 Budget, christened: “Budget of economic re-engineering” has well-defined policy trust and priorities within the Medium Term Expenditure Framework (MTEF) and the second blueprint titled: REDEEMED agenda.
According to him, the competing needs of the people are programmed and prioritized in alignment with the Medium Teem Sector Strategy (MTSS). He added that there will be significant improvements on Independent Revenue (IR).
Igbasan, who mulled increased IR through efficient and innovative revenue administration system, said the budget would be funded from there major sources: Federation Account (N57.843b), IR (N30.9b) and other sources (N110.4b).
“The N110.9b revenue from other sources, as said by him, would come from cash reserve, special FAAC allocations, excess crude, short-term borrowing/domestic, long-term borrowing, grants and health insurance contributions.
The Commissioner stated that budget implementation is a joint responsibility of every stakeholder in the state, urging the people, especially tax-payers, to cooperate with the state government for efficient service delivery.
“Let me reiterate that everyone living and earning income or have significant economic presence in the state must pay their taxes as and when due.
“By so doing, we will have the moral right and justification to enjoy public facilities provided by government and demand accountability from our leaders,” Igbasan said.
