portends for residents.
THERE are indications that 2017 holds so much promises for Lagosians. That was the consensus of observers, after going through the details of the 2017 budget, which was signed into law by Governor Akinwunmi Ambode.
The signing of the budget into law exactly 41 days after it was presented to the House of Assembly for approval suggests that Ambode is leaving no one in doubt about his renewed quest to hit the ground running and consolidate on the infrastructural development that has become synonymous with his 19-month old administration.
Considering the array of projects contained in the N812.998bn budget, there is no doubt that, if well implemented, it will improve the vibrant economy of the state and make life more comfortable for Lagosians.
Some of the projects include; construction of the Murtala Mohammed International Airport Road from Oshodi, 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 in the Epe axis and the completion of the Abule-Egba, Ajah and Pen Cinema flyovers.
Ambode said the budget will be successfully implemented to consolidate on the achievements of his administration. He said emphasis would be on the development of physical infrastructure, while social sectors, especially health, education, youth and social development, would get adequate attention.
Giving the key components of the budget, he said the recurrent expenditure would gulp N300.535b, while N512.464b would be dedicated to capital expenditure, representing a Capital/recurrent ratio of 63 per cent to 37 per cent.
According to the governor, road construction, rehabilitation and maintenance are major highlights of the budget, adding that the idea is to focus road projects that will open up the hinterlands, improve connectivity in the state and reduce travel time.
Another aspect of the 2017 budget is that government intends to enter into a Public Private Partnership (PPP) to execute some of the projects. Roads that would be done under PPP scheme include: Oke Oso-Itoikin dualisation project in the Epe axis, Okokomaiko-Seme Road project in Badagry axis and Ikorodu-Agbowa-Itoikin-Ijebu Ode Road project in Ikorodu axis. The governor also disclosed that the Phase II of the 114 Local Government Roads Projects, as well as, the construction of the Fourth Mainland Bridge would kick off during the year.
Ambode said the budget will consolidate on the modest milestones recorded so far and that focus will be on key areas of infrastructure, economic, social security and sustainable environment.
Not only is the governor optimistic that the national economy would recover from recession, the state’s 2016 budget performance, which stood at 78 per cent, is also a precursor of what 2017 would be.
He said the commitments of the administration included prudent financial management, fiscal discipline and equitable allocation of resources for the general good.
But, he was also quick to appeal to residents to cooperate towards the successful implementation of the budget through prompt tax payment.
The Commissioner for Finance, Economic Planning and Budget, Mr. Akinyemi Ashade, who gave the breakdown, said the total revenue is estimated at N642.848 billion with a deficit financing of N170.151 billion.
He explained that N476.309 billion, representing 74 per cent of the total revenue, will be generated internally, while N166.539 billion, representing 26 per cent, is expected from the federal allocation, including the 13 per cent derivation.
Ashade said the Lagos State Inland Revenue Service (LIRS) is expected to generate N360 billion, which is equivalent to 75 per cent of the total internal generated revenue, adding that the N170.151 billion deficit will be funded through a N100 billion bond and a combination of internal and external loans.
He said: “We intend to scale up the current two per cent revenue gross domestic product (GDP) ratio, to five per cent in 2017 and also bring in more people from the informal sector into the tax net, as well as adoption of an automated single billing system.
“We shall maintain zero tolerance to incidence of under declaration of income by tax payers in accordance with relevance laws.”
On sectoral breakdown, Economic Affairs had the lion share with a total of N296.717 billion, representing 36.50 per cent, while Social Protection had the lowest estimate of N6.180 billion, representing 0.76 per cent.
Others include: General Public Service, N207.155billion, representing 25.48 per cent, Public Order N39.722, Environment N56.569 billion, Housing and Community Amenities, N50.344 billion, Health N51.447, Recreation, Culture and Religion N12.419 billion and Education N92.445 billion.
Giving a sectoral breakdown of the 2017 budget estimates, Ashade said N205.85b was earmarked for General Public Services, representing 25.32 per cent of the budget. N36.43b to Public Order and Safety, representing 4.48 per cent, while Economic Affairs received a lion share of N295.84b, representing 36.39 per cent of the budget.
Ashade gave the breakdown of other sectors as: Environment 56.31b, representing 6.93 per cent; Health 57.29b (7.05 per cent); and Education N92.4b or 11.37 per cent of the budget.
The commissioner said the Budget would be funded from a total revenue estimate of N642.849b, while the balance of N170.150b would be sourced through a N100bn Bond Issuance programme and a combination of internal and external loans.
The N138.249b earmarked for road infrastructure will be used to complete the Abule-Egba overhead bridge, the Ajah bridge, continued massive road rehabilitation in partnership with the Local Governments/Local Council Development Areas. The fund will also be used for the Murtala Mohammed International Airport Road from Oshodi, the Agric-Isawo-Owutu-Arepo Road in Ikorodu, the Igbe-Igbogbo Phase II- Bola Tinubu Way in Ikorodu, the Ijegun Imore Phase II, the Amuwo in Ojo axis, the Oke-Oso-Araga-Poka in Epe, the Epe-Poka-Majoda in Epe and the Pen Cinema flyover, among others.
The N51.376bn budgeted for transportation will be use for the Blue Rail Line, advancement of 10-Lane Lagos-Badagry Expressway, construction of jetties and terminals (especially at Epe and Marina with shoreline protection) and procurement of ferries to improve water transportation and encourage tourism.
Ashade added: “The government is also committed to the expansion of Busa Rapid Transit (BRT) lanes in Lagos and we shall pay due attention to Oshodi – Abule Egba BRT Corridor. In the course of the 2017 financial year, we shall carry out fundamental reforms on all our modes of transportation – roads, water and the walkways. In this wise, a Public Transport Infrastructure Bond will be issued in the course of the year.”
On housing, he said the N50.290b investment would allow government to focus on affordable housing units through Rent-to-Own schemes in Badagry, Lagoon View Topo-Idale and Imota, while the total sum of N15.291b out of the allocation is committed for the completion of on-going housing estates in Sangotedo, Odo Nasa Agowa and Ikorodu Ibeshe.
The sum of N57.290b allocated to the health sector is for the continuous upgrading/renovation of health facilities and completion of on-going healthcare infrastructure, including MCCs, upgrading/renovation of primary healthcare centres, completion/equipping of Drug Quality Control Laboratory (DQCL), prevention of blindness/ special health projects, construction of specialist hospital, construction of Medical Park, among others.
In education, the N92.4b earmarked has been set aside for the rehabilitation/upgrading of public school buildings/facilities, continued provision of furniture for secondary schools, construction of new schools, schools improvement plan for secondary schools, provision of equipment for science laboratories, among others.
In the area of Science and Technology, Ashade said N11.006bn has been proposed for strategic information management, building and upgrade of IT infrastructure statewide, e-GIS land automation, single billing system and ease of payment for taxes, levies and other revenue items, as this would include Smart City project targeted at deploying technology to enhance security in the State and will also enhance our revenue generating efforts.
In the budget, N11.098b has been proposed for spending in the area of governance. Ashade said N1.250b out of the amount would be spent on various capacity building programmes, through the Ministry of Establishments, Training and Pensions, to expose public servants to both local and international trainings in order to equip them for their role in actualizing the Lagos State Development Plan 2012-2025.
The commissioner further explained that the sum of N3.8bn has been set aside for the 7.5 per cent government share to pension contribution and N7.15b for Pension Redemption Bond Fund-shortfall.
On women affairs, Ashade said N2.193bn has been proposed for various initiatives, such as upkeep and maintenance of skill acquisition centres, special poverty alleviation intervention programmes for women, construction/maintenance of skill acquisition centres and other poverty alleviation related projects at Isheri, Ibeshe, Eredo, among others.
The commissioner said the sum of N6.177bn has been proposed for the ongoing development of Lekki Free Zone, Industrial Park development, development of enterprise zones, Badagry Deep Sea Port, Eko Atlantic project and other areas.
A total of N9.457b has also been earmarked for the development of four mini stadia, upgrading of Teslim Balogun Stadium hostel, construction of 50 community youth recreation centres across the state and provision of sporting facilities in schools and local governments across the state. The sum of N18.181b has also been proposed for advancement of Adiyan Waterworks (phase II) and rehabilitation of mini waterworks all over the state and the improvement of water pipeline and reticulation.
In the tourism sector, N20.247b will provide for the Development of the Heritage centre for leadership (Lugard House), the Centre for Yoruba Culture & History (Lagos House), the J.K Randle Centre, transformation of the Onikan Museum, establishment of Museum for Art and Culture in Ikeja, the development of tourism hubs in Lagos-West and Lagos-East and the construction of five Cultural Theatres in Alimosho, Badagry, Epe, Ikorodu and Ikeja.
Also, the N4.795b earmarked for Agriculture and Food Security will cater for accelerated food expansion programme focused on rice production, animal husbandry and root crops, as well as collaborate with other states in the area of food production.
The Speaker of the Lagos State House of Assembly, Hon. Mudashiru Obasa, is optimistic about the budget.
For him, the judicious implementation of the 2016 budget by Governor Ambode, against all odds, has gone a long way to confirm his financial expertise.
The Speaker, who was represented at the budget signing ceremony by the Chairman, House Committee on Appropriation, Hon. Rotimi Olowo, said many laudable projects, including the construction of 114 roads across all the local governments within a year, were undertaken by the administration.
He said: “That means by 2023, just in eight years, he would have done over 1,000 roads in addition to what the Ministry of Works and Public Works Corporation is doing.
“Another area that is unbeatable is the ‘Light up Lagos’, which no doubt increases the economy of our mothers and fathers. That is in tandem with Article of Faith as entrenched in the 1999 Constitution, which summarily explains that the Governor is determined and committed.”
Governor Ambode is expected to implement the ‘Golden Jubilee Budget’ to consolidate on the modest achievements and propel the state to enviable heights.
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