A budget size of 812.998 billion Naira has been presented to the Lagos State House of Assembly.
In the breakdown, over 300 billion Naira is to be spent on recurrent expenditure, while over 500 billion Naira will go for capital expenditure, which represents a ratio of 37 to 63 percent.
Significant in the 2017 fiscal document is the commencement of the multi-billion naira fourth mainland bridge project, a memorandum of which had been signed with a consortium of companies.
Governor Akinwunmi Ambode says the budget which is tagged ‘the Golden Jubilee Budget’ is significant especially as Lagos State marks its 50th Anniversary.
Mr Ambode explained that health, education, youth and tourism sectors would be given top priority in the 2017 budget.
“The Year 2017 Budget will be in effect at an auspicious time when our state will be celebrating its Golden Jubilee Anniversary, the proposed budget with a size of N812.998 billion will continue the massive renewal of our infrastructure and the enhancement of Lagos as one of the foremost tourism and investment destinations in Africa; while we focus on physical infrastructure, we shall continue to pay due attention to social infrastructure especially health, education, youth and social development in 2017,” he stated.
According to him, “the key components of the Golden Jubilee Budget are: budget size- 813 billion naira, recurrent expenditure 300, 535 billion naira Capital expenditure- 512, 464 billion naira, capital-recurrent ratio is 63:37.”
2016 budget performance
Governor Ambode stressed that the year 2016 budget which stood at 662.6 billion Naira had shown significant performance at 71 percent as at the end of October.
“The Year 2016 budget of N662.588bn was approved and signed into Law on January 4, 2016, to focus on the expectations and priorities of our people; as at the end of October 2016, the overall performance of the budget was 71 percent, total revenue stood at 350 billion while Capital Expenditure closed at N200bn, the recurrent Expenditure performed at 82%,” he added.
Governor Ambode also hinted that massive road construction and road rehabilitation would be the given serious attention in the New Year as government would stop at nothing to open up the hitherlands, improve connectivity in the State and reduce travel time.
He affirmed that in 2017, the full implementation of the State’s health insurance scheme would kick-off, while major works would also commence on the proposed medical park.
“Some of these projects will be addressed in the golden jubilee budget of 2017, they include- Murtala Mohammed International Airport Road from Oshodi, Agric-Isawo-Owotu-ArepoRoad 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 in the Epe axis, completion of the Abule-Egba, Ajah and Pen Cinema flyovers.”
“Our administration shall enter into PPPs (public private partnership) for the following projects: Oke Oso-toikindualisation Project in the Epe axis, Okokomaiko-Seme Road Project in Badagry axis, Ikorodu-Agbowa-Itoikin-Ijebu Ode Road Project in Ikorodu axis, we will commence the Phase II of the 114 Local Government Roads project and the Fourth Mainland Bridge in 2017,” he stressed.
The Lagos State Governor said that the budget would be funded through internally generated revenues (IGR), federal collections and deficit financing.
According to him, although the rising inflation rate is a source of concern, the state will increase its efforts in shoring up its revenue base to cushion the effects of inflation.
Governor Ambode also announced that from December this year, Lagos State would start collecting its statutory 13 percent derivation accruable from oil exploration from the Nigerian government.
Speaker of the State Assembly, Mr Mudashiru Obasa promised an accelerated consideration for the fiscal document.
Mr Obasa also used the occasion to call for a special status saying the state has the capacity to pull Nigeria out of economic recession.
In the current year’s (2016) budget, the recurrent Expenditure is put at over 278 billion Naira, while the Capital Expenditure is estimated at 384 billion Naira; a ratio of 58:42.