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Budget and poverty alleviation: The Ogun example
By Wole Elegbede
Another forward-looking and people-oriented budget has been
presented in Ogun State. The State’s Executive Governor, Otunba Gbenga
Daniel, presented the budget to the Ogun State House of Assembly on November
24, 2004 - the second in the life of his administration. He is the first
State Governor to present his State’s budget for next year - an
indication of his candour, commitment to duty and preparedness to tackle the
challenges faced by his administration.
The budget has further kindled the hope of Ogun people in
democracy. The people see it as a demonstration of the interest of the
Governor in their socio-economic well-being. They believe that the
administration would be faithful in the implementation of next year’s
budget as it has done in the execution of the outgoing year’s budget.
This year, the people have reaped bountifully from the meticulous and honest
implementation of the budget and this has translated into improved
infrastructural facilities, provision of social services and economic
prosperity in the gateway state.
For an understanding of the philosophy behind the budgets of
the PDP administration in Ogun State, it is important to know where Otunba
Daniel is coming from. Before he became the Governor, he was concerned about
the dwindling fortunes of the State and wondered why this should be so.
According to his perception, Ogun State, considering its huge natural and human
resources, is too rich to be poor. He promised to restore the State to its
rightful position as a leading State in the country.
Thus, the budget for the outgoing year was christened
“Budget of Re-Awakening”. The aim is to use the instrumentality of
the budget to re-awaken Ogun State from its slumber. Otunba Daniel was more
explicit when he intoned that the objective was “to emphasise our resolve
to turn around the fortunes of the State and free her people from poverty
through effective mobilisation and efficient management of the State’s
abundant resources and opportunities, which hitherto had remained
untapped.”
To be sure, the year 2005 budget takes its cue from the
outgoing year’s budget. Tagged “Budget of Expansion” the year
2005 budget has helped to create continuity in policy formulation and project
execution. The idea is to pursue vigorously the progressive programmes that the
administration has introduced since coming to power on May 29, 2003. The
provisions of this budget are targeted at transforming the State and reducing
the level of poverty to the barest minimum.
The Administration has introduced some changes in the
conduct of government business. These innovations have, to a large extent,
helped to enhance the performance of the budget and the running of government.
Before the assumption of office of Otunba Daniel, the procedure of fund
approval was centralised. This has been reviewed. Right now, commissioners and
permanent secretaries can approve limited amount of funds.
To promote transparency and accountability in governance,
the ministries and parastatals must comply with the due process and due
diligence mechanism. The three levels of Tenders Board have been resuscitated.
Contract jobs and procurement must go through laid down tender rules and
procedure. To guard against delay and failure in project implementation, the
administration has set up the State Project Implementation Committee to monitor
on-going projects at all stages. The application of the same mechanism to the
administration of salaries and pensions has helped to eliminate the incidence
of ghost workers in the public service, thereby saving about N50 million every
month in the payment of workers salaries. The good performance of the budget
under the PDP banner in the Gateway State has also been facilitated by the resuscitation
of the State’s short-term economic action plan. Preparation has reached a
dvanced stage for the commencement of the 2004-2007 State Economic and
Development Plan, aimed at the articulation and systematic implementation of
projects.
Against the backdrop of these innovations, the
implementation of the budget in the outgoing year could be described as sound
and impressive. There are so many areas jostling for our attention here but
permit me to limit the review to three areas in order not to bore the readers
- agriculture, road construction and health.
There is no doubt that agriculture remains an important
sector of the overall economy. In view of this, Government decided to accord
maximum support to the sector. Farmers in the State enjoyed credit facilities
to the tune of N50 million from the Ogun State Agriculture and Multipurpose
Credit Agency (OSAMCA). The State Ministry of Agriculture during the year
raised over 13,000 pullets for sale to poultry farmers as replacement stock for
old layers while vaccination of animals were carried out. In line with
government’s promise to establish more farm settlements as a means of
boosting food production, the farm estates at Owowo, Isaga Orile and Ogbogbo
were commissioned. Another batch of 1,000 participants were trained at Odeda
Farm Institute and were settled in the various farm estates across the state.
The performance of the budget in the area of road
construction has been excellent right from the inception of the present
administration. The Ogun State Road Maintenance Agency (OGROMA) has been able
to construct and rehabilitate over 150 roads across the state. OGROMA has
become a household name in Ogun State because of its outstanding performance.
The age-long saying - ‘health is wealth’
- has gained a lot of recognition since the coming of Otunba Daniel. One
major achievement of the administration is the successful take-off of the Ogun
State Rural Medical Scheme (OGRUMED) designed to offer assistance to the less
privileged in remote parts. Over 21,000 people have already been treated of
various ailments across the State at no cost the patients. Six ambulances were
procured to enhance the effectiveness of the State Accident Services Scheme
while the school of nursing at Ilaro, which was closed down for many years, has
been re-opened.
The success of the 2005 Budget would depend on how
it could build on the performance of the outgoing year’s budget. As
Otunba Daniel puts it: “Our intention is to sustain the tempo of the
various lofty programmes that this administration had embarked upon since its
inception, renew the trust that our people have come to invest in our
administration and further spread the dividends of democracy among our
people”.
According to the Governor, the plan of the
administration is to use the 2005 Budget for two important purposes. The first
is to continue to improve the socio-economic well being of the people while the
second is to prepare ground for the successful hosting of the 2006 National
Sports Festival. The administration hopes to use the hosting of the games to
engender prosperity among the people and renew the infrastructure.
Government would give priority attention to road
development, electrification, provision of drinkable water and tourism in 2005.
Other areas that will enjoy government support include sports, agriculture,
environmental services, education, human capital development, transportation
and housing.
There is no doubt that the Ogun State 2005 Budget
is an ambitious and all-encompassing project, with the potential of laying
solid economic foundation. I am sure government would receive complete
co-operation from the citizens, as the gains of the budget implementation
appear in the coming months.
Elegbede is a former chairman of
Imekon/Afon Local Government in Ogun State.
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