There is a litany of documents stakeholders both existing and prospective ones in every organization look out for. Interests of such individuals are keen and peculiar to each of them. These documents are needed to make informed decisions on how to foster their businesses and relationships with the organization presenting such documents. For instance, shareholders and other interest holders needs books of account of a company to decide whether to continue, discontinue or begin to holding interests in a particular company.
The above is analogous to the quantifiable plan called BUDGET presented by Governor Oluseyi Abiodun Makinde to the hallowed chamber of Oyo State on the 13th day of November. This is one of various prerequisites to any fiscal year. Citizens who are interested in the document will begin scanning, skimming or painstakingly reading through it to have idea of how every facts and figures therein will affect them come Financial Year (FY) 2025 though yet to be approved.
Let’s have a analysis of the proposed budget. Economic indices- Inflation rate being the mother of them all is a major reason many budget preparers will be experiencing a huge difference between what they had in the previous accounting period and what they intend to have in the coming period. Comparative analysis not done in isolation shows that the FY 2025 budget increased by 35% compared to FY 2024 budget. The budget is totalled #678,086,767,332.18 with Capital expenditure having 50.59% and #343,028,948,216.20 in percentage and absolute terms respectively. Recurrent expenditure got #335,057819,115.98 and 49.41% in percentage and absolute terms respectively. These are subject to alteration as the state assembly deem it fit. A slight difference of 1.18% is commendable as much will be spent on capital projects with possibly future cash flows. It is worth noting that the state needs to do more as an entity wooing investors to bring their liquid assets into the state.
A further breakdown of the budget coupled with a sectoral analysis show that infrastructure has 22% of the total budget. My two cents aforementioned on capital expenditure capture what I have to pen down on the sector.
Education budget being the second with largest share has #145,354,783,399.80. This is a testament to the fact that Governor Seyi Makinde prioritizes education. Here is a way to ensure human capital development which is a bedrock for any economic development. But it is not yet UHURU. More can be done to the sector advancing and becoming a state to simulate, emulate and imitate.
There is nothing to achieve without a good health. Oyo State Government has been doing well so far in terms of health. Primary healthcare and other levels of healthcare have improved. Health Insurance Scheme is not an exemption. I hope the #59,411,385,714.68 health sector is about to get will aid more advancement from current status to a better status.
Food inflation rate is a major contributor to the nation’s high inflation rate. How do we fight that? It is through massive food production which can be achieved through agriculture. Oyo state is one of the federating units in Nigeria with large arable lands to cultivate what we eat. All the five zones of the state are blessed with everything to farm. I don’t think 2.77% of the budget will be enough to achieve so much in Oyo agriculture sector. Probably the house committee on agriculture should suggest ways to have unprecedented achievement in the sector.
In coasting home, I commend the state government for making provision for the new minimum wage. Here is another major contributor to the surge in the budget due to increase in wage bill. I hope this brings succour to the good people of Oyo State.
God bless Oyo State.
God bless the Federal Republic of Nigeria.
Michael Ogundiran writes from
Chartered Accountant and Public Affairs Analyst. He can be reached via blessingogundiran01@gmail.com or
09036447289
