OYO STATE 2012 BUDGET ANALYSIS

Presented by:

Dr. Olaniyi Nurudeen Olarinde Honourable Commissioner for Economic Planning

and Budget

Introduction It is with a great delight that I present to you this afternoon the year 2012 Oyo State

Budget breakdown. I wish to recall with some nostalgic feelings, that it was in this same Chamber some thirteen years ago, that I presented the 1998 Budget Analysis, then as the Honourable Commissioner For Finance Budget and Planning. Between then and now our state has not remained the same in terms of budgeting.

You will recall that His Excellency, the Executive Governor of Oyo State, Senator Abiola Ajimobi, on the 20th of this month presented to the Oyo State House of Assembly the year 2012 budget christened "Budget of Restoration." My mandate this afternoon is to present the facts behind the figures as contained in the budget speech of His Excellency.

Let me say from the onset that the year 2012 budget is a clear departure from the past in many fundamental respects and this is deliberate.

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In a long while, this is the first time the state will have a budget in which the capital expenditure is greater than the recurrent expenditure.

Also in a long while, this is the first time the state is proposing a deficit budget based on our sincerity of purpose.

This time around, we have taken budgeting beyond the annual ritual of figure juggling whereby unrealistic and unachievable revenue estimates are proposed just to balance out the proposed expenditure in order to arrive at a balanced budget.

The primary focus of the 2012 budget of Oyo State is the socio- economic transformation of the state. Since its inception this administration under the able leadership of His Excellency Senator Abiola Ajimobi has made it clear that its mission is to restore, transform and reposition our state for greater heights. As we move into the analysis of the budget, the fundamental differences between what we have proposed and what used to be the case will come into sharp focus

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Medium Term Analysis (2009 – 2011)

Medium Term Revenue Profile 2009-2011

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Medium Term Revenue Performance ‘000 000

2009 actual figure 2010 actual figure 2011 actual figure

DETAILS OF REVENUE

Budget 2009

ACTUAL 2009 % Perf. Budget 2010

ACTUAL 2010 % Perf. Budget 2011

ACTUAL 2011 L.E % Perf.

Total I G R

31,601.94 16,358.60

51.76

34,939.88

11,726.35

33.56

34,112.58

13,516.98

33.56

Statutory Allocation 42,000.00 21,574.96

51.37

43,000.00

29,466.79

68.53

43,001.82

35,884.82

83.45

Value Added Tax 5,000.00 6,485.31

129.71

10,100.00

7,641.02

75.65

15,000.00

8,242.47

54.95

Others 3,000.00 12,463.17

415.44

23,950.00

9,973.68

41.64

35,000.00

15,238.01

43.54

Sub-Total 50,000.00 40,523.44

81.05

77,050.00

47,081.48

61.11 127,114.40

59,365.29

46.70

Total Revenue

81,601.94 56,882.04

69.71

111,989.88

58,807.83

52.51

161,226.98

72,882.27

45.20

Capital Receipts : 46,807.42 736.83

1.57

32,450.38

3,367.04

10.38

36,148.71

1,166.52

10.38

Grand Total 128,409.35 57,618.87

44.87

144,440.25

62,174.87

43.05 163,263.11

74,048.80

45.36

Medium Term Expenditure Performance 2009 - 2011

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S/N

ITEMS OF EXPENDITURE

BUDGET 2009

ACTUAL 2009

% Perf.

BUDGET 2010

ACTUAL 2010

% Perf.

Budget 2011

ACTUAL 2011 L.E

% Perf. ‘000 000 ‘000 000 ‘000 000 ‘000 000 ‘000 000 ‘000 000

1 PERSONNEL COST

23,393.21 18,128.01

77.49

25,659.18

20,100.13

78.34

40,503.02

31,153.25

76.92

2 OVERHEAD COST

12,223.47 7,191.42

58.83

12,914.84

6,712.70

51.98

14,281.22

5,969.72

41.80

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CONSOLIDATED REVENUE FUND CHARGES

15,403.03 12,263.63

79.62

17,352.71

11,155.97

64.29

21,631.00

14,072.29

65.06

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TOTAL RECURRENT EXPENDITURE

51,019.70 37,583.05

73.66

55,926.73

37,968.80

67.89

76,415.24

51,195.25

67.00

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CAPITAL EXPENDITURE

77,389.65 22,143.26

28.61

86,135.37

22,693.16

26.35

86,847.87

15,887.77

18.29

7 GRAND TOTAL

128,409.35 59,726.31

46.51

142,062.10

60,661.96

42.70

163,263.11

67,083.02

41.09

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2012 BUDGET (BUDGET OF RESTORATION)

Revenue Estimate

It will be seen from the above mentioned figures that the Statutory Allocation constitutes the major source of our revenue in the State (32%)

The implication of this is that the State still rely on the allocation from the Federal Government to execute most of its projects and programmes.

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ITEM OF REVENUE

APPROVED ESTIMATES 2011

ACTUAL REVENUE 2011 L.E

PROPOSED REVENUE 2012

% Performance

2011

% VARIANCE

2012 /2011L.E

(i.) Internally Generated Revenue (IGR)

34,112,577,823.00

13,516,979,194.12

30,005,905,000.00 39.62 121.99

(ii) Statutory Allocation (Gross)

43,001,820,156.00

35,884,817,477.22

50,400,000,000.00 83.45 40.45

(iii) Value Added Tax (VAT)

15,000,000,000.00

8,242,469,417.10

10,000,000,000.00 54.95 21.32

(iv) Others (Excess Crude Oil, Budget

35,000,000,000.00

15,238,005,659.29 10,000,000,000.00 43.54 -34.37

TOTAL RECURRENT REVENUE (i-iv)

127,114,397,979.00

72,882,271,747.72 100,405,905,000.00 57.34 37.76

B. Capital Receipts

36,148,707,700.00 1,166,523,603.20 10,000,000,000.00 3.23 757.25

TOTAL REVENUE (A+B)

163,263,105,679.00 74,048,795,350.93

110,405,905,000.00 45.36 49.10

Cont’d To reduce dependence on Federal allocation, the State intends to do the following:

Strengthening of the State Board of Internal Revenue.

Establishment of a one-stop shop for tax collection

Introduction of ICT for tax collection activities.

Increase IGR from N1.5bn monthly to at least N2.5bn

Summary:

Total Revenue: N110,405,905,000.00

Deficit: N50,162,989,000.00

Total Estimate: N160,568,894,000.00

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110.41

50.16 Revenue

Deficit

Breakdown of Revenue in %

IGR 19%

STATUTORY ALLOCATION

32%

VAT 6% OTHERS

6%

CAPITAL RECEIPT

6%

DEFICIT 31%

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Expenditure Estimate

The total expenditure N160,568,894,000.000

Total recurrent expenditure N72,680,754,000.00 (45.26%)

Total capital expenditure N87,888,140,000.00 (54.74% )

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ITEM OF EXPENDITURE

APPROVED ESTIMATES 2011

ACTUAL REVENUE 2011 L.E

PROPOSED REVENUE 2012

% Performance 2011

% Increase/Dec

rease over 2011

PERSONNEL COST

40,503,021,593.00

31,153,249,263.15

40,278,454,000.00 76.92 29.29

OVERHEAD COST

14,281,215,095.00

5,969,715,196.45

14,414,300,000.00 41.80 141.46

CONSOLIDATED REVENUE FUND CHARGES

21,631,000,000.00

14,072,285,917.35

17,988,000,000.00 65.06 27.83

TOTAL RECURRENT EXPENDITURE

76,415,236,688.00

51,195,250,376.94

72,680,754,000.00 67.00 41.97

CAPITAL EXPENDITURE

86,847,868,991.00

15,887,769,806.69

70,138,140,000.00 18.29 341.46

FLAGSHIP PROJECTS 17,750,000,000.00

GRAND TOTAL

163,263,105,679.00

67,083,020,183.63

160,568,894,000.00 41.09 139.36

Recurrent – Capital Expenditure (NBn)

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40.28

14.42 17.99

70.14

17.75

personel Cost

Overhead Cost

CRFC

Capital Exp

Flagship Project

87.88

72.68 CAPEX

Recurrent

Top 20 MDAs by Revenue

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Rank MINISTRIES / AGENCIES REVENUE 2012

1 Statutory Allocation 50,400,000,000.00

2 Oyo State Board of Internal Revenue 13,000,000,000.00

3 Value Added Tax (VAT) 10,000,000,000.00

4 Others 10,000,000,000.00

5 Capital Receipt 10,000,000,000.00

6 Ministry of Lands, Housing and Survey 2,500,000,000.00

7 Ministry of Trade,Investment and Cooperatives 2,136,854,000.00

8 Ministry of Agriculture, Nat. Resources 2,000,000,000.00

9 Ministry of Works & Transport 2,000,000,000.00

10 Ministry of Physical Planning and Urban Development 2,000,000,000.00

11 Oyo State Housing Corporation 1,200,000,000.00

12 Ministry of Education 1,000,000,000.00

13 Ministry of Justice 1,000,000,000.00

14 Office of Accountant - General 550,000,000.00

15 Office of the Governor 500,000,000.00

16 Oyo State Agricultural Development Programme 350,000,000.00

17 Ministry of Health 250,000,000.00

18 Ministry of Water Resources 250,000,000.00

19 Ministry of Environment and Habitat 210,000,000.00

20 Office of the Surveyor- General 170,000,000.00

TOTAL OF TOP 20 REVENUE 109,516,854,000.00

TOTAL REVENUE FOR 2012 110,405,905,000.00

Top 20 MDAs by Expenditure

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Rank MINISTRIES / AGENCIES T otal E xpenditure Percentage %

1 Ministry of Works & Transport 18,650,000,000.00 11.61

2 Teacher's salary 18,240,000,000.00 11.36

3 Flagship Projects 17,750,000,000.00 11.05

4 Ministry of Finance 15,467,000,000.00 9.63

5 Office of the Governor 9,934,000,000.00 6.19

6 Hospitals Management Board 4,622,000,000.00 2.88

7 The Polytechnic, Ibadan 3,931,600,000.00 2.45

8 Ministry of Agriculture 3,600,000,000.00 2.24

9 Ministry of Health 3,560,000,000.00 2.22

10 Ministry of Education 3,383,000,000.00 2.11

11 Oyo State Pension's Board 3,162,000,000.00 1.97

12 Ladoke Akintola University of Technology,Ogbomoso 2,756,000,000.00 1.72

13 Emmanuel Alayande College of Education,Oyo 2,750,000,000.00 1.71

14 Water Corporation of Oyo State 2,495,000,000.00 1.55

15 Lautech Teaching Hospital, Ogbomoso 2,434,200,000.00 1.52

16 Ministry of Environment and Habitat 2,400,000,000.00 1.49

17 The Legislature 2,381,900,000.00 1.48

18 State Universal Basic Education Board 2,352,800,000.00 1.47

19 Ministry of Establishments and Training 2,320,000,000.00 1.44

20 Oyo State Road Maintenance Agency 2,280,400,000.00 1.42

TOTAL TOP 20 + 124,469,900,000.00 77.52

TOTAL BUDGET ESTIMATE 2012 160,568,894,000.00 100.00

Sectoral Analysis of 2012 Capital Expenditure

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Sub- APPROVED PERCEN-

Head Sectors/Details of Expenditure ESTIMATES TAGES

2012 %

ECONOMIC SECTOR

A Agricultural and Rural Development 3,260,753,000.00 3.71

Livestock 110,500,000.00 0.13

Forestry 102,080,000.00 0.12

Fishery 210,150,000.00 0.24

Urban/Rural Electrification 2,813,341,944.00 3.20

Industries, Commerce, Finance,

Cooperatives 1,752,000,000.00 1.99

Transportation 17,388,568,056.00 19.78

Flagship projects 17,750,000,000.00 20.20

SUB-TOTAL 43,387,393,000.00 49.37

B SOCIAL SERVICES SECTOR

Education 7,868,215,000.00 8.95

Health 4,723,000,000.00 5.37

Information and Culture 2,302,700,000.00 2.62

Social Development, Youth and Sports 3,483,000,000.00 3.96

SUB-TOTAL 18,376,915,000.00 20.91

REGIONAL PLANNING &

ENVIRONMENTAL

C DEVELOPMENT SECTOR

Water Resources 4,030,000,000.00 4.59

Environmental Sanitation, Sewage and

Drainage 1,939,938,200.00 2.21

Housing 2,844,000,000.00 3.24

Town and Country Planning 2,663,500,000.00 3.03

SUB-TOTAL 11,477,438,200.00 13.06

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General Administration Sector 14,646,393,800.00 16.66

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Highlights of major projects in 2012 include the following:

Flagship Projects ◦ 3 Silos of 10,000 Metric Ton each (PPP)

◦ Agricultural produce logistics center (PPP)

◦ 5 star hotel (PPP)

◦ Circular Road (PPP)

◦ Canning factory (PPP)

◦ Airport Concession (PPP)

◦ Ultra Modern Housing Estate (PPP)

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Economic Sector Agricultural Sector

◦ Completion and renovation of farm settlement (Ilora, Ipapo/Iseyin, Eruwa & Ogbomosho)

◦ Opening and rehabilitation of access roads across the farm settlements in the state

◦ Production of hybrid cocoa, cashew & Tenera Oil palm seedlings

◦ Establishment and maintenance of cocoa farmers field school in Oyo State

◦ Third National Fadama Development Project (NFDP III)

◦ National Agricultural Technology Support Programme (NATSP)

◦ National Programme For Food Security (NPFS)

◦ Oyo State agric information system

◦ Procurement of 7000MT (NPK/UREA) fertilizer

◦ Agric youth empowerment program

◦ Procurement of 70 tractors with matching implements

◦ Rehabilitation of 4zonal offices (Ibadan, Saki, Ogbomosho & Iseyin)

◦ Establishment of honey factory and quality control lab

◦ Establishment of Shea butter production centers

◦ Provision of aqua-cultural facilities to 20 LGA

◦ Provision of smoking kiln & housing in 15LGA

◦ 3 Silos of 10,000 Metric Ton each (PPP)

◦ Agricultural produce logistics center (PPP)

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Works and infrastructure Sector

◦ Rehabilitation of 44 roads across the state through direct labour

◦ Rehabilitation and construction of 50roads across the state covering Ibadan zone, Ibarapa Zone, Ogbomosho Zone, Saki Zone & Oyo Zone

◦ Construction of a fly-over at Mokola

◦ Maintenance and construction of street light in Ibadan, Saki, Oyo, Ogbomosho & Iseyin

◦ Refurbishment and maintenance of traffic lights at major road junctions in the state

◦ Purchase of new fire fighting equipment, emergency tenders, mini quick response vehicles, emergency/ rescue tenders & various fire service loose equipment

◦ Establishment of new fire stations in 21 local governments across the state

◦ Maintenance and spot rehabilitation of intercity roads

◦ Routine maintenance of township roads

◦ Reconstruction and rehabilitation of collapsed bridges and culvert

◦ Construction of 3 new motor parks & Renovation and repair of mass transit park

◦ Dualization of mass transit road

◦ Provision of various infrastructural facilities at the Okerete Free Trade Zone

◦ Circular Road (PPP)

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Trade, Investment & Cooperatives

◦ Construction of 6 cooperative zonal offices at Iganna, Oyo, Ibadan, Okeho, Saki & Ogbomosho

◦ Canning factory (PPP)

◦ Airport Concession (PPP)

◦ 5 star hotel (PPP)

◦ Revitalization of Oyo State Cooperative College, Oyo

◦ Cooperative wealth creation loan scheme

◦ Repositioning of state owned companies through PPP

◦ Establishment of Oyo State owned insurance firm

◦ Rehabilitation of Bola Ige International Business Complex

◦ Setting up of a businesses and enterprise database

◦ Upgrading of Trade Fair Complex, Sango

◦ Establishment of International Gem Stone buying Centre (PPP)

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Social Services Sector Education

◦ Provision of additional classrooms, braille embosser and other teaching equipment for handicapped

◦ Payment of WAEC fees

◦ Provision of extra coaching for final year students in secondary school

◦ Prompt payment of teachers salary on or before the 25th of every month

◦ Provision of JSS and SSS text books

◦ Over 300,000 notebooks will be printed and distributed to students

◦ We shall embark in conducting a compulsory Screening/qualifying mock exams for SSCE before they are eligible to sit for WASSCE&NECO

◦ Bursary/Scholarship Award to students

◦ Completion and rehabilitation of classrooms and provision of furniture state wide

◦ Completion of the Oyo State Library Board E-learning center

Health

◦ Construction and upgrading of health facilities

◦ Implementation of activities in the state strategic health development plan

◦ Completion and furnishing of 6 bed Primary Health Care facilities Mosfala, Ikija, Egbeda, Iwere-Ile, Arulogun & Igbon

◦ Construction of 62 new Primary Health Care centers spread across 62 different wards in underserved areas

◦ Procurement of ambulances for Jericho Specialist Hospital, Jericho Nursing Home, State Hospital Saki and 4 General Hospitals (Ado-Awaye, Aremo, Iresadu & Igboora)

◦ National Health Insurance Scheme will be boosted by N165m

◦ Renovation of Jericho nursing home

◦ Equiping of Jericho Nursing Home, Oni Memorial Children’s Hospital & Jericho Specialist Hospital

◦ Free health mission

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◦ Renovation and Equiping of Ring Road State Hospital

◦ Strengthen health information system

◦ Renovation and upgrading of school of midwifery Eleyele

◦ Purchase of medical laboratory equipment, x-ray machines & medical equipment

Information and Culture

◦ Organising the Maiden Oduduwa Festival to include all the Yoruba Speaking States (Edo and Kogi inclusive)

◦ Cultural Exchange Programmes

◦ Commencement of preliminary works on the proposed Hotel Boulevard around Cultural Centre towards 2013 (Survey, Advertisement etc.)

◦ Upgrading of Bower’s Tower to attract Tourists

◦ Rehabilitation of cultural centre complex

◦ Purchase of parts for Basorun AM Tx6 for BCOS

◦ Construction of Fm Studio at Alaga Station26 & Digitalization of Ajilete & Oke Ogun FM Station

◦ Construction of TV Studio at Ogbomoso

◦ Establishment of a new FM Radio at Ilora, Oyo

◦ 10KW solid state TV Transmitter for Ibadan & Ajilete

◦ Studio-Transmitter-Link (STL) Network for AM & FM Radio Signal for the BCOS-Ibadan, Ilora, Ipapo, Alaga & Oje-Owode

◦ Establishment of Lagos and Abuja Bureaus/News-room/Studio (BCOS)

◦ Construction of new information centers at Ogbomosho, Igboora, & Igbeti

◦ Renovation of existing information centers at Oyo

◦ Grassroot enlightenment on government program and activities, UNICEF & SACA activities and HIV/AIDS

◦ Establishment of Oyo State archive

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Social Development, Youth & Sports

◦ Creation of 20,000 jobs through the YES-O scheme

◦ Provision of “keke Ajumose” to create employment, ensure safety and crime prevention

◦ Renovation of International Youth Year (IYY) Village, Ajoda

◦ Completion of Oyo Youth Centre, Dubar, Oyo

◦ Repatriation of Juvenile, Displaced person, Home Tracing & publicity of Government assistance and procurement of drugs for destitute

◦ Promotion of Early Child Care Development (OVC)

◦ Treatment of special ailments of some Ministry staff/HIV/AIDS and Rape awareness programme

◦ Implementation of Oyo State Child Rights Law

◦ Widowhood Support Scheme

◦ Women Summit

◦ Continuation/Completion of State Centre for Women Development Samonda, Ibadan

◦ Renovation of Rehabilitation Centre Moniya and other Welfare homes

◦ Construction of Rescue centre for Displaced Persons e.g Destitute Refuges

◦ Grants –in-aid for Self-Help Projects

◦ Women Empowerment Programme

◦ Establishments of 6 Additional Skill Acquisition Centre

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Regional Planning & Environmental Development Sector Lands & Housing

◦ Provision of Staff Housing Loan

◦ Payment of Compensation on Land Acquisition

◦ Maintenance/Development of Intelligence sheet

◦ Provision of Infrastructure for existing and new schemes (G.R.A.s)

Environment

◦ Flood and erosion control

◦ Dredging of Rivers and Streams in Ibadan, Oyo, Oke ogun and Ogbomosho Zone

◦ Clearing of blocked drainage state wide

◦ Provision of 150 skip bins state wide

◦ Repair of 100 roll off and roll on containers for strategic placement

◦ Procurement of litter bins

◦ Provision of new plant and equipment for 4 existing dumpsites

◦ Purchase of 5 refuse trucks and 15 compactors

◦ Improvement on sewage, sewage treatment & beautification

◦ Provision of street signage

◦ Public Enlightenment for effective waste management

◦ Upgrading and maintenance of existing dump sites and clearing of unauthorized refuse depots (fumigation and special sanitation inclusive)

◦ Public Enlightenment for effective waste management

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Water Resources

◦ Construction of mini-water supply schemes at Afijio, Iddo, Ogo-Oluwa, Oluyole LG, Ona-Ara, Lagelu, Akinyele & Surulere

◦ Water treatment plant for Ikere Gorge Dam

◦ Maintenance and dredging of existing dams and rivers across the state

◦ Flood/Erosion Control Works in Ibarapa Zone

◦ Palliative Flood Control along Omi River, Omi-Adio

◦ Preparation and Production of Hydro-geological Map

◦ Design of Sewarage Treatment plant for Ibadan

◦ Development and Management of Water Bodies

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General Administration Establishment of Oyo State records & archives Bureau

Establishment of Bureau of Statistics

Prompt payment of Oyo State civil servants salary, e-payment of teachers salary and hospital management board staff.

Staff audit and biometric registration of civil & public servants

Training and staff development

Execution of statistical master plan

State Economic Summit

Establishment of resource center and installation of equipment

Census of public and private educational health institutions

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Budget Implementation Strategy, Monitoring & Evaluation Administrative Monitoring and Evaluation(MDAs)Focus on speed and high

implementation rate

Independent Monitoring and Evaluation with the involvement/ engagement of External Supervising Engineers/Consultants-(State–wide)

All existing M & E units within the Government to be harmonised and coordinated by the Ministry of Economic Planning and Budgeting

OSSEMAT(including His Excellency’s spot-checks)to play over sight and supervisory role

Focus of independent M&E to be on: Rate of Delivery Quality of Delivery/Project Impact of Projects

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Conclusion Ladies and gentlemen, let me express the appreciation of the Executive Governor

of Oyo State Senator Abiola Ajimobi to the good people of the State for giving us your support thus far. I wish to appeal that you to continue to give your unflinching support to this administration in realizing our restoration, transformation and repositioning agenda.

Let me also thank OSSEMAT for the tremendous contribution of the entire team into this well thought out budget of restoration. My ministry will continue to count on the support and effective contributions of the team towards the implementation of the budget.

I wish also to express our profound gratitude to Madam Speaker and the Honourable Members of Oyo State House of assembly for their support at all time. It is hoped that the budget will receive accelerated attention of the House.

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Thank You

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