Fashola proposes N485.292bn budget for 2012

Posted by admin Headlines, Lagos, State News Monday, November 14th, 2011

Lagos State Governor, Mr. Babatunde Fashola has presented a budget proposal of N485.292 billion to the State House of Assembly for approval for 2012 fiscal year.
The budget, which is expected to revamp and boost economic prosperity of the state, comprise, N227.47 billion recurrent expenditure and N257.821 billion capital expenditure. The capital to recurrent ratio of the budget is 53:47 as against the 56:44 in 2011.
The budget also represents an increase of N40 billion over the 2011 budget, which stood at N445.18 billion

The deficit-financing requirement proposed in the budget is N59.781bn, which is 1.19 per cent of the State’s Gross Domestic Product, GDP.
The total revenue is N399.834 billion and comprises Ordinary Revenue, N289.676 billion and Federal Transfers of N110.158 billion.

The components of the total overhead costs of N145.960 billion are: Overhead cost, N79.797billion; Dedication Expenditure, N25.595 billion; Subvention, N28.668 billion, Staff Housing Fund, N0.050 billion; Debt charge (External), N1.050 billion; Debt charge (Internal), N6.958 billion and Debt Charge (Bond), N3.842 billion.

Capital receipts for the year 2012 budget is put at N25.677billion and is made up of: Grants, N3.468billion; Investment Income, N0.289 billion and other Capital Receipts, N21.920 billion, while the capital expenditure of N257.821billion consists of: Core Capital, N222.868 billion; Capital Development (Dedicated), N21.920 billion; Grants, N3.468 billion; Counterpart Funding, N3.465 billion, Special Expenditure N6 billion and Risk Retention Fund, N0.100 billion.

The sectoral allocation of the budget in size and percentage are as follows: General Public Service, N108.526 billion (22.4 per cent); Public Order and Safety, N13.849billion (2.9 per cent); Economic Affairs, N154.419billion (31.8 per cent); Environmental Protection, N44.227 (9.1 per cent); Housing and Community Amenities, N42.812 billion (8.8 per cent); Health, N39.754 billion (8.2 per cent); Recreation, Culture and Religion, N5.989billion (1.2 per cent); Education, N72.346 billion (14.9 per cent) and Social Protection, N3.370 billion (0.7 per cent).

Presenting the budget, the governor explained that, “significantly, this would be a most challenging budget to implement. Critically, it is the first full budget in this term of great expectation, when we must again begin to fulfill new electoral promises and meet citizens’ expectations at a time of enormous economic and security challenges.
“For a start, let me assert very clearly that our purpose and commitment towards delivering the greatest good for the greatest number is not in doubt. We have a clear plan, informed by a progressive manifesto of the fastest growing political party, the Action Congress of Nigeria ( ACN).

Fashola said his administration was concerned about the quality of life of working and middle class people and those who were vulnerable in our state, saying “the resolve has led to many strategic policies aimed at making life better and less challenging.”
According to him, the policies were administrative and legislative, adding that three of such that readily came to mind were the recent laws to create the Office of Disability, review the Criminal Law and the Tenancy Law.

“The law creating the Office of Disability gives legal backing to some of what we are doing already, to recognize that some people are physically challenged and require special provision to make them lead as normal a possible life in spite of their disabilities.”

While receiving the budget brought by the executive arm of government for consideration by the House, the Speaker of the Lagos State House of Assembly, Adeyemi Ikuforiji, affirmed the resolve of the House to support the governor to meet the expectations of the people.
The Speaker, who drew the attention of the governor to the challenges of the local government areas and the local council development areas in the state, told the governor that there was need to carry the LGAs and LCDAs along to ensure that the success recorded at the state was replicated at the grassroots.

“The local government is the third tier of government and the closest to the grassroots. They can in no small measure enhance the all-round development of the people at the lowest ladder of our society.
“However, it is imperative to vividly underscore the fact that the local governments across board in the country is not only neglected but most often than not it is treated with levity and ignominy. This sore point must be promptly addressed in Lagos State so that we can again serve as torchbearers for others to emulate,” he added.

He also advised the governor on the effective management of the public finances, which he described as paramount to good governance.
Ikuforiji said fiscal consolidation “or bringing down the budget deficit to reasonable levels is vital to avoid inflation,” adding that the state was bedeviled with wide-ranging encumbrances while commending the governor for his efforts so far in the development of the state.
The budget presentation was witnessed by members of the state traditional council led by Oba Akiolu of Lagos, members of the National Assembly including Mrs. Oluremi Tinubu, state chairman of the Action Congress of Nigeria (ACN).
Others at the presentation included members of the State Executive Council, Senator Olorunimbe Mamora and past members of the State House of Assembly.

-Sunwp_posts