THE Ondo State governor, Dr Olusegun Mimiko, on Thursday, presented a budget of N138.5 billion before the state House of Assembly, for the 2011 fiscal year.
The budget proposal, as presented by the governor, was made up of N81.69 billion for capital expenditure, while recurrent expenditure would gulp N56.8 billion.
The governor said the state had projected to raise revenue from various sources outlined, based on the assumptions contained in the federal budget of a crude oil price of $65 per barrel.
According to him, the budget had a high capital expenditure, because it was the quantum and quality of capital expenditure in an economy that would determine the direction and the momentum of growth and societal development.
According to him, the provision for capital expenditure included the N7.2 billion statutory grant to the Ondo State Oil Producing Areas Development Commission (OSOPADEC).
Giving a breakdown of the expected revenue of the state, Mimiko put statutory allocation at N38 billion; internally generated revenue (IGR), N12 billion; mineral derivation, N18 billion and value added tax (VAT), N8 billion.
Others were grants/credit from development partners, N5 billion; sundry income, N25 billion; Education Trust Fund (ETF), N1.5 billion and refund on federal roads repairs, N1 billion.
Another major component of the 2011 was that the state planned to secure a loan of N25 billion to finance the budget, while excess crude oil was omitted from expected revenue.
He said N23.35 billion was allocated to economic sector; N25.37 billion to social services; environmental and regional services, N22.14 billion, while administration had N10.57 billion.
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