Lagos Governor, Akinwunmi Ambode, has tendered a budget proposal of N812.998 billion to the Lagos State House of Assembly for the 2017 fiscal year.
The budget tagged: ‘Budget of Golden Jubilee,’ has an increase of N150.410 billion above the previous budget of N662.588 billion.
Ambode said the budget will enable his administration continue the massive renewal of infrastructure and enhancement of the state as one of the foremost tourism and investment destinations in Africa.
In the budget, N512.46 billion was proposed as capital expenditure while N300 billion is voted as recurrent expenditure.
The governor said the 2017 budget, which is the first full budget of his administration, will promote investment in security, transport and traffic management, physical and social infrastructure development and enhance job creation.
“The increase will enable our government to focus on the current challenges of security, traffic gridlock resolution, including physical and social infrastructure development, which has thrown up new challenges different from what we used to experience.”
Focusing on physical infrastructure, the governor added that his administration will pay attention to social infrastructure, especially health, education, youth and social development in 2017.
A key focus of the budget for the 2017 is road construction. Some of these projects will include the Murtala Mohammed International Airport Road from Oshodi. Others are Agric-Isawo-Owotu-Arepo Road in Ikorodu Igbe-Igbogbo Phase II- Bola Tinubu Way, in Ikorodu, Ijegun Imore Phase II Amuwo in Ojo axis, Oke-Oso-Araga-Poka in Epe, Epe-Poka-Mojoda along Epe axis. Completion of the Abule-Egba, Ajah and Pen Cinema flyovers.
He added that his administration would enter into PPPs for the following projects Oke Oso-Itoikin dualisation project in the Epe axis. Okokomaiko-Seme Road project in Badagry axis, Ikorodu-Agbowa-Itoikin-Ijebu Ode Road project in Ikorodu axis.
Commissioner for Finance, Mr. Akinyemi Ashade said Economic Affairs received a lion share of N295.84 billion, representing 36.39 percent of the total budget.
He also said the government had earmarked N205.85 billion for General Public Services, representing 25.32 percent of the budget. In other sectors, Ashade told newsmen that environment got N56.31 billion. representing 6.93 percent, health got N57.29 billion representing 7.05 percent,
Key components of the budget are recurrent expenditure, N300.535 billion, capital expenditure, N512.464 billion, while capital/recurrent ratio stood at 63:37.
He disclosed that the state has maintained a conservative approach in estimating the federal allocation to the state due to falling oil prices that was about $41.98 per barrel at the time the budget was prepared.
However, he said the state expects an increase in federal allocation through 13 percent derivation from oil and gas in 2017.
“In view of our financing gap, we shall continue to sustain deficit financing in the while education got N92.4 billion representing 11.37 percent of the budget, with N36.43 billion to public order and safety, representing 4.48 percent.
Housing and community amenities will gulp N50.29 billion of the total budget, representing 6.19 percent
Other sectorial allocations of the budget are recreation, culture and religion, social protection and education take 12.41 billion, N6.174 and N92.4 billion representing 5.3 percent, 0.76 percent and 11.37 of the budget respectively.
The commissioner said the budget would be funded from a revenue estimate of N642.849 billion while the balance of N170.150 billion would be funded through a N100 billion Bond Issuance programme and a combination of internal and external loans.