National Wire About Nigerians, Nigerian Business and Other Stories
Tayo Olanipekun
Governor Akinwunmi Ambode on Monday presented to the Lagos State House of Assembly a total of N1,046,121,181680 as the proposed 2018 budget for the state.
The budget,tagged Budget of Progress and Development, will be used to consolidate on infrastructure, education, transportation/traffic management, security and health,according to the governor.
This is as he also noted it would also place an “added emphasis on mandatory capacity building for civil servants, all teachers in public secondary / primary schools, officers in the health service sector, women and youth empowerment, alongside Medium and Small/Micro Size Entrepreneurs (MSMSE’s).”
The proposed budget amount represents an increase of 28.67 per cent over that of 2017, with its key components of Recurrent Expenditure – N347.039bn; Capital Expenditure – N699.082bn and Capital/Recurrent Ratio – 67:33
The governor explained, “The estimate of total revenue for year 2018 is N897.423billion of which N720.123billion will be generated internally. A total of N148.699billion will be sourced through deficit financing within our medium term expenditure framework.
“Our investment in new technology and the reforms put in place will galvanize the efficiency of our revenue collection from our citizens. The highlights of sectoral allocation for Y2018 include; General Public Services N171.623billion, Public Order and Safety N46.612billion, Economic Affairs N473.86billion, Environmental Protection N54.582billion, Housing and Community Amenities N59.904billion, Health N92.676billion Recreation, Culture and Religion
N12.511billion, Education N126.302billion, Social Protection N8.042billion.”
He said that 2017 had been quite challenging due largely to the recession that hit the nation’s economy.
“Although the Nigeria economy is still fragile and just coming out of recession, commitment to our people made us work harder to deliver results as we continue our reforms to ensure a safer and more prosperous Lagos. Today, we are proud to say that our collective efforts and transformations have contributed immensely to the improvement of Nigeria’s ranking in the World Bank’s Global Index on the ease of doing business.
“To get a clear picture of the economic challenges that have confronted our government, it is necessary to restate some important indicators. Crude oil prices have been dwindling from $US100.40 in 2014, $US 52.65 in 2015, $US43.81in 2016 to $US46.39 in 2017. Exchange rate increased from N156.44 in 2014 to N305.24 in 2017. The impact of this has been a sharp reduction in the inflow from the (Federal Government) Federation account and a huge increase in the cost of project delivery.”
He said despite this situation, his government had been able to initiate and deliver “more high quality and high impact projects.”
The governor said his administration inherited external loans from various past administrations which make up 60 per cent of all the state’s loans.
“This figure is made up of some loans that have been running since 1989, about 30 years ago, and were contracted at an average of N80 to $US1. Today these loans are being repaid at an average rate of N305 to $US1 translating to 205 per cent increase in the loan repayment rate.
“The state has incurred huge exchange losses on its external loans in this year ace,” Ambode said.
He equally noted that the state average contribution to the National Gross Domestic Product (GDP) from 2015-2017 “remains strong at about 30 per cent.”
Photo Caption:
Lagos State Governor, Mr. Akinwunmi Ambode, presenting the Y2018 Budget Estimates to the House, at the Assembly Complex, Alausa, Ikeja, on Monday, December 11, 2017.
