administration will concentrate more on capital expenditure to abridge
the huge infrastructural deficit in the State.
In the budget, capital expenditure for the 2018 fiscal year stands at
N80.929 Billion which is 46% of the total Budget. It is the first time
capital expenditure recorded an all time high in the state budget.
Akeredolu said his administration has taken a bold step to reduce the
unfortunate situation of frittering all its earnings on recurrent
expenditure.
He lamented the huge concentration of budgets on recurrent
expenditure, adding that it is worrisome considering the state of
development in the state.
Akeredolu said the decision was to ensure that governance was spread
to the majority of the people who are not employed by the Government.
The governor spoke at the signing of the 2018 appropriation bill and
two other bills at the cocoa conference hall at the governor's office,
Alagbaka Akure on Tuesday.
A total budget of N181.424 was signed into law by the governor who
assured that the 2018 budget will advance the course of development in
the state.
According to the governor, debt service will take an estimated sum of
N13.600 Billion which is 7.5%. Statutory Transfers to OSOPADEC and
Local Governments is N8.307 Billion which represents 4.6%.
"The sum of N78.588 Billion which represents 43.3% is set aside for
recurrent expenditure. Put simply, this amount will be expended on
salaries, allowances and grants. This is still very much on the high
side considering the state of our development " he said.
Akeredolu who also signed the Contributory Health Insurance Scheme
Bill, said the bill will ensure that every resident of Ondo State has
access to good health care services.
He said " the bill will ensure that all residents of Ondo State have
financial protection, physical access to quality and affordable health
care services
" It will also Protect families from the financial hardship posed by
huge medical bills, Regulate the rise in the cost of health care
services
"It will ensure that the poor and vulnerable shall be guaranteed the
basic minimum package as defined under the National Health Act. "
Akeredolu said the bill will bring equitable distribution of health
care costs across different income groups and maintain high standard
of health care delivery services within the Health Sector.
According to him, the bill will provide efficiency in health care
service delivery and improve private sector participation in the
provision of health care services among others.
The governor who also signed the Ondo State Social Protection Law,
said his administration will continue to make the well-being of the
people the commanding principle upon which all activities are laid.
Akeredolu who noted that paucity of funds was a great challenge to the
set objectives, assured that his administration was determined to
improve fiscal circumstances through an aggressive regime of revenue
mobilization and generation.
" We shall reward diligence not in abstract terms. Stiff and swift
sanctions, however, await anyone, either a civil servant or political
appointee, who may choose to test our Will
"We shall expand our tax base to capture virtually everyone in the
state. We will continue to educate our citizens on the significance of
paying tax to the state. All those who own businesses must pay taxes
commensurate to their concerns
"Every adult within the tax bracket must be ready to pay tax in one
form or the other. This is the only way out of the current
socio-economic problems confronting the State. "he said.
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