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Author Topic: Osun earned N204bn in four years –Aregbesola  (Read 1713 times)

Offline Crown Mix

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Osun earned N204bn in four years –Aregbesola
on: June 03, 2015, 07:11:38 AM

The Osun State Governor, Mr. Rauf Aregbesola, said on Tuesday that the state earned N204bn from the federation account, internally generated revenues and other accruals from Abuja between 2010 and 2014.

The governor gave this explanation in his speech when he inaugurated the sixth assembly in the state.

Aregbesola spoke just as Mr. Najeem Salaam was returned as the Speaker of the House of Assembly for the second term.

The governor, who was obviously reacting to allegations of financial recklessness levelled against his administration by the Social Democratic Party in the state, denied exposing the state to a financial crisis.

While promising that things would soon get better, the governor traced the genesis of the financial crisis in the state to 2012 when salaries increased drastically as a result of hike in wages.

Aregbesola said, “The summary of five years reveal that in the two months of 2010, we received a net allocation of N4.2bn and paid emoluments of N3.6bn. This left us with a net gain of N573m from our statutory allocation.

“In 2011 also, we got N29.9bn allocation and spent N25.8bn on emoluments with a net gain of N4bn. However, in 2012, we got N28.4bn and expended N31.6bn on emoluments.

“This left us, for the first time, with a deficit of N3.2bn. The following year, 2013, our statutory allocation had dropped to N26.4bn while our emoluments rose to N36.9bn. This gave us a whopping N10.4bn deficit.

“In 2014, our statutory allocation fell further to N19.3bn and by which time we were already defaulting on some of our obligations on emoluments.

“In summary, between November 2010 and December 2014, we got a total statutory allocation of N108.3bn and our expenditure on emoluments was N120.4bn. It left us with a total deficit of N12bn.

“Aside from expenditure on salaries, if other emoluments are to be included, the total recurrent expenditure will be N206bn and statutory allocation will be N108.3bn. With other accruals from Abuja, it will add up to N176.5bn, leaving the state with a deficit of almost N30bn.”

“Even when we add our internally generated revenue, we were still only able to muster N204bn and still short by N2bn. It simply means that all our earnings from all sources between 2010 and 2014 could not carry our recurrent expenditure.”

Responding, the new Speaker appealed to workers, who have been on strike for a week, to end the industrial action in the interest of the state.

Salaam said that the state government had been working hard to ensure that the six months’ salaries were paid.

He said, “The delay in salary will soon be resolved and our state’s economy will return to its vibrant status. So, I can assure you that the governor is working round the clock to bring the salary impasse to an end.

“I, therefore, call on our able workers to please end the current strike they embark on in the interest of our state and people.”



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