Monday, 27 January 2014

Lagos State Government 2014 Budget Breakdown

The Lagos state government proposed a total budget of four hundred and eighty nine billion, six hundred and ninety million as the appropriation for the 2014 financial year.

The proposed budget is slightly lower than last year’s budget.

Governor Babatunde Fashola presented the budget proposal to the state assembly.

A breakdown of the proposed budget shows that economic affairs get the largest chunk of thirty two-point-six-eight percent, followed by general public service with twenty point-four-seven percent.

The education sector is to get fifteen point-eight-one percent, while ten point-three-two percent is allocated to housing & community amenities followed by environmental protection with eight point eleven percent.

The health sector is to get seven-point-seven-two percent, as three point six-seven percent is allocated to Public Order & Safety.

Capital expenditure is expected to gulp about two hundred and fifty-five billion naira, with an expected capital to recurrent ratio of fifty two point-four-eight as against fifty-eight-point-four-two this year. The proposed deficit financing for the budget is zero.

Allocation was also made for recreation, culture and religion.  

Presenting the bill to the state assembly, Governor Fashola said the slight reduction in its size when compared with this year’s budget was due to the fact it will be the last full year budget before the expiration of his tenure.

Pledging that the appropriation will focus on completing on-going projects, Governor Fashola who thanked the federal government for approving the two hundred million naira World Bank loan for capital projects including the Light Rail, and Adiyan Water Works in the state however said that the loan came behind schedule.

According to the Governor, “The recent inefficiencies that states have experienced in the process of federal government agencies accounting for revenues and the consequent delays in remittances owing to disputes over accounts have affected all states in different degrees.

While salaries were delayed in other states, that did not happen here, but the effect was felt in a slight reduction of our third quarter budget performance”  he said.

Governor Fashola said “While I thank them for finally giving the approval, it is instructive to contextualize the timing of the approval. You might all re-call that in 2010 when I presented the year 2011 budget, I announced that we had negotiated a World Bank loan for $600m to fund a three year medium term expenditure framework for years 2011, 2012 and 2013 which required Federal Government approval.

“Although the approval for the loan was given then and the year 2011 first tranche for $200m was released in that year, the year 2012 and 2013 tranches were frustrated by federal government agencies. It is the year 2012 component and year 2013 component that is now being approved in the last quarter of 2013. In truth and in fact, our state’s development was held up and slowed down for 2 years. He stressed.

Pointing out that work on the projects did not stop despite

the delay, Governor Fashola said his administration has approved the reconstruction of twenty-five roads in addition to on-going rehabilitation of more than two hundred roads.

The Governor used the occasion to appeal to residents to be security conscious, maintain personal hygiene and be mindful of seasonal changes.

“Starting from regular hand washing, cleaning our drains, bagging our refuse and most importantly not urinating and defecating in open places” he emphasized.

“We must all rise to embrace regular hand washing and we must condemn and stop those other unsanitary acts such as defecation and urination in public spaces, in order to prevent outbreak of diseases and epidemics”. Fashola said

Responding, the Speaker of the assembly, Chief Adeyemi Ikuforiji stated that the bill would be given accelerated attention.

“I want to assure you on behalf of all of us in the assembly that we will apply our utmost best, within our legislative powers to give this budget proposal the determined attention it deserved for the benefit, prosperity, growth and development of Lagos State and Lagosians.” Ikuforiji said.

The Speaker also used the occasion to brief the Governor and Lagosians about development in the House.

The presentation ceremony was attended by the first democratic governor of the state, Alhaji Lateef Jakande as well as traditional rulers, and various interest groups.

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