The Lagos State Governor, Mr. Akinwunmi Ambode, yesterday presented an appropriation bill of N852.316 billion to the House of Assembly, stressing that the proposal had been carefully prepared to be all-encompassing and dedicated to complete major ongoing projects in the state.
During the budget presentation, the governor put the capital expenditure at N462.757 billion, which represented 54 per cent of the total budget size and recurrent expenditure at N389.560 billion, which also accounted for 46 per cent
He listed key projects that would benefit from the budget to include the Oshodi-Murtala Mohammed International Airport road, Oshodi Interchange Terminal, Pen-Cinema flyover and Oshodi-Abule-Egba BRT.
Ambode said from inception of his administration, nine key areas were given priority after careful assessment of the needs of the citizens.
He added that such had informed the massive investment in the said sectors, which include security, traffic management, and the economy.
Giving details of what informed the budget size, Ambode said the performance of 2018 budget of N1.046 trillion as at November 2018 stood at 60 per cent owing to reduction in revenue projections, while the total revenue stood at N530.192 billion.
Ambode said, “In the outgoing year, however, we experienced a reduction in our revenue projections, which affected our projected performance and our desired implementation of the 2018 budget.
“The overall budget performance as at November 2018 stood at 60 per cent or N574,206 billion with actual cumulative total revenue of N530,192 billion or 64 per cent, capital expenditure closed at N311,930billion or 49 per cent and recurrent expenditure performed at N262,276billion or 82 per cent.
“In preparing the 2019 budget, therefore, we were very mindful of the out-going year performance, the yearnings of our people and the fact that we are going into an election year.
“Consequently, we are today presenting a budget that will be all-encompassing, reflect the level of resources that will be available and with special consideration to the completion of major on-going projects in the State.”
He outlined the key components of the 2019 budget and the sectoral allocations, saying with priority given to the completion of major infrastructure projects and smooth transition to the next administration, the government was proposing a total budget size of ‘N852,316,936,483,’ including a deficit financing of N77.086billion which is expected to be sourced from internal loans and other sources.
He added that the projected total revenue for 2019 “is N775.231 billion, of which N606.291 billion is expected to be generated internally, 168.940 billion is expected from federal transfers while a total of N77.086 billion will be sourced through deficit financing within our medium term expenditure framework.
“In 2019, as was with our previous budgets, Economic Affairs still dominates the sectoral allocation of the proposed budget. This is due to our continued focus on the completion of major on-going projects.
“The projects include Oshodi-Murtala Mohammed International Airport Road; Agege Pen Cinema Flyover; Phase II of Aradagun-Iworo -Epeme Road, Oshodi Interchange Terminal; completion of JK Randle Complex, Onikan Stadium; Imota Rice Mill; and renovation/furnishing of Lagos Revenue House, among others in order to meet their specified deliverable outcomes without any bias or prejudice to others.”
He expressed optimism that the revenues of the state would improve in 2019, noting that the state government had begun consolidating on the already established public financial management and technology-driven revenue reforms through data integration and use of multi-payment channels.
The governor explained that every strata of the society “will benefit from the budget. The 2019 budget has been carefully planned to accommodate all and sundry; women, youth and physically challenged, young and old”.
“We will continue to spread development to all part of our state even as we embark on effective transition knowing full well that the implementation, failure or success of the Budget depend on all of us,” he said.
Ambode commended the lawmakers for the support accorded his administration in the last three and half years, acknowledging the role of the royal fathers, religious leaders, members of the business community, professional bodies, and development partners.
He also lauded non-governmental organisations, public servants and all residents as well as members of the fourth estate of the realm for their various support and contribution during the lifespan of his administration.
In his remarks, Speaker of the assembly, Hon. Mudashiru Obasa expressed optimism that the budget would be of great benefit to the people of the state, assuring that the assembly would work with the executive to pass the budget.