The Oyo State Government said the 2017 budget proposal of more than N207bn which was presented to the state House of Assembly was designed not to rely on statutory allocation from the Federation Account.While giving the budget analysis, the state Commissioner for Finance, Abimbola Adekanmbi, said the government planned to raise its Internally GENERATEDRevenue to N107.2bn in 2017, adding that such move would liberate the state from hinging its budget on fund from federal allocation.
According to the budget presented by Governor Abiola Ajimobi to the house, N59bn which represents 28.41 per cent of the budget is expected from the federal account. Presently, the state makes N1.5bn from IGR monthly, which amounts to N18bn annually. But Adekanmi said the amount would multiply in multiple folds after the state government realised areas where revenues were being lost over the years.
He said there was no plan to raise tax or impose arbitrary levy on the citizens of the state. He also explained that after holding meetings with the informal sector like traders and transporters in the state, players in the sector had agreed to contribute to the state revenue and ease it of financial difficulties it went through in the past two years. He said because there were millions of players in this sector, huge revenue would be realised to finance the budget and rely less on statutory allocation.
Adekanmbi said, “The state government is determined to block financial leakages and review its revenue drive. Lots of revenue can be GENERATED from IGR if properly designed and pursued but we also need the cooperation of the people, which we are sure of getting. The informal sector has suddenly realised that it can help finance the budget and drive the state economy with little contribution from the members. This will amount to huge fund because the sector has large population, more than the formal sector.
“The projection of government is to realise N40bn from the Ministry of Lands, Housing and Urban Development while the Health Insurance Scheme will generate more than N8bn. These are just two of the TOP 20 revenue generating ministries, departments and agencies of government.” The commissioner said each market in the state was expected to pay agreed amount to the state coffers monthly, adding from the amount paid, necessary amenities would be provided in the markets.