Lagos proposes N171 billion for Budget 2006

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December 09, 2005/Source The Independent

 

 

 

Lagos State Government intends to spend  N171.103 billion in 2006, according to the budget Governor Bola Tibunu presented to the state Assembly on Thursday.

The vote is N58.103 billion higher than the 2005 appropriation of N99.9 billion and a supplimentary budget of N13  billion.

And it is three and half times more than the budget of N48.58 billion in neighbouring Ogun State, where the lion share of N10,718,500,000 billion went to education in pursuit of the effort to reposition the sector.


Viewed against an estimated population of 15 million, the Lagos budget translates to less than N12,000 per resident per year, which Tinubu acknowledged falls far short of what is required to lift Lagosians above the poverty line.

“While this budget size would remain a huge challenge to achieve for this administration, it is not more than the appropriation for fire service in Manhattan, New York, and far bellow waste management cost in the city of Chicago”, he said, drawing on his experience in the United States where he schooled.

The budget comprises N94.195 billion as recurrent expenditure and N76.908billion as capital expenditure.

A total N112.83 billion was proposed for collection as ordinary revenue, made up of N81.83 billion  internally generated revenue (IGR), N30 billion federal allocation and N1 billion from miscellaneous items. 

Recurrent expenditure is N27.692 billion higher than this year’s N66.503billion, with provision for such as public debt charge, overhead cost arising from fuel price increases, road maintenance, essential services and incentives to health and other sector workers.

In the recurrent expenditure, personnel cost was allocated N27.75 billion (29.46 per cent), overhead cost, N44.144billion (41.63 per cent) and public debt charge, N22.301 billion (23.68 per cent).

Some N76.908 billion was proposed for developmental programmes. It consists of N6.5billion as capital contribution, N7.74 billion as grants and N12 billion from the Value Added Tax (VAT).

Tinubu said N71.808 billion is ring-fenced for core capital while N5 billion is for special expenditure.

The focus of the government next year is to maintain the level of development already achieved, and priority would be to complete projects critical to long term growth.

Reviewing the performance of this year’s budget, Tinubu told the lawmakers that as of September, the budget recorded a performance of 64 per cent, with N51.9 billion raked in as actual collection out of the N63.900 billion proposed.

A total N30.992 billion was collected as IGR and N20.942 billion came in as statutory allocation.

Tinubu expressed the need for the people of the state as well as corporate organisations to pay taxes and called for equity in revenue allocation in the country with the adoption of derivation principle.


Ogun State Governor, Gbenga Daniel, presented the budget to the state Assembly in Abeokuta at about the same time as Tinubu did in Ikeja.

He said education got the largest chunk to properly fund the four newly established polytechnics and to create four model secondary schools, one in each division in the state.

The vote will also sustain the gains recorded in education in the last two years.

Other sectoral allocations are water supply (N2.36 billion), health (N2.32 billion), housing (N1.54 billion), environment and ecological management (N1.225 billion), agriculture (N1.161 billion), roads (N6.191 billion) and sports (N926 million).

Daniel said agriculture will continue to receive priority to serve as “the bedrock for gainful employment for the young and old”.

Mindful of the expanding population of Abeokuta and other cities, the government plans to build 48 new water supply schemes statewide.

A total N568 million has been provided for the schemes and another four deep wells in each of the 236 wards.

To ensure improved electricity supply, especially in the rural areas, the government plans to spend N740 million; part of which will be used to procure 12 transformers and provide 30 rural electrification projects with each of the three senatorial districts getting 10.

The goal is “to raise the standard of living of the rural/semi urban communities and also stem the rural urban migration by making these communities more attractive”, Daniel stressed.

The capital projects include reconstruction of Lafenwa slaughter slab; Gateway Pharmaceutical Quarters, Ijebu Ode; development of students hostels; new low cost housing schemes in Agbara, Ota, Ifo, Ijebu Igbo, Ikenne, Imeko Afon, Ipokia, Abigi, Sagamu, Ilaro, Owode Yewa and Ayetoro.

The roads along Iju-Ajuwon, Iberekodo-Okeona, Ijagun-Imaweje are among the 13 scheduled for completion in 2006 by the Ogun State Road Management Agency (OGROMA).

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