Governor Babatunde Fashola
Lagos State Government has said it plans to source for a total of N141.152 billion through external and internal loans in order to fund the capital expenditure which represents about 28.25 per cent of the N499.605 billion appropriated for the 2013 fiscal year.
The figure was revealed yesterday when the state’s Commissioner for Economic Planning and Budget, Mr. Ben Akabueze, presented the 2013 budget analysis to the stakeholders in the state secretariat, Alausa.
Akabueze, who addressed the media with Commissioner for Finance, Mr. Tokunbo Abiru, his information counterpart, Mr. Aderemi Ibirogba, and Special Adviser on Economic Planning and Budget, Mrs. Iyabowale Aluko, said the 2013 budget would focus more on completing existing projects than initiating projects.
But the commissioner gave the breakdown of the financing component of the 2013 budget which showed that the state government would source for N68.733 billion through external borrowing; N37.419 billion through internal loans as well as N35 billion, which would be through bond issuance.
Unlike the 2012 fiscal year when about N11.85 billion was apportioned to debt servicing, the commissioner said that N18.53 billion had been earmarked for the same purpose in 2013.
The breakdown of the debt servicing for 2013 showed that N609 million was set aside for external debt charges; N15.938 billion internal debt charges and N1.989 billion for bond issuance charges, compared to N1.050 billion (external); N6.958 billion (internal) and N3.842 billion (bond) respectively in 2012.
Of the total budget of N499.605 billion, the commissioner said the state government only “expects N117.250 billion from the Federation Allocations,” which he explained was about N59 billion expected as statutory allocation; about N58 billion as value added tax (VAT) and about N250 million as extraordinary revenue.
In comparison with the sum of N289.676 billion the state government accrued from the internally generated revenue (IGR) last fiscal year, Akabueze put the 2013 projection at N316.578 billion, which represents an increase of about 8.49 percent in the state IGR.
He said the state government expected the State’s Internal Revenue Service to turn in no less than N253.2 billion. Out of this, about N21.753 is expected to be generated as dedicated revenue; N4.512 billion to accrued as extra-ordinary revenue; and other sources of revenue were expected to bring N37.113 billion into the state treasury.
He explained that the state government would concentrate basically on four economic sectors in the medium term, which according to him, included power, agriculture, transportation and housing (PATH).
He listed other critical focus areas for the 2013 budget to include security (law and order), education, vocational training and skill acquisition, health, environment, e-government, rural development, water and microfinance.
Akabueze added that the state government would also work harder to ensure payment of outstanding liabilities, completion of on-going projects, expansion of scope on infrastructural renewal as well as deepening framework or institutional arrangement for maintenance of public infrastructure.