Wednesday, November 30, 2016 7:34 am
*Roads, Education, Health get huge allocation
*LIRS to rake N360 billion from tax
*N164.9 billion from Federal Allocation
*Estimated revenue: N642.849 billion
Thousands of Lagosians thronged the Lagos State House of Assembly on Tuesday to witness the presentation of a mega budget for 2017 by Governor Akinwunmi Ambode. The budget presentation was short and precise, but in the end, the governor reeled out a budget of N812.99 billion.
Later in the day, a breakdown of the budget was unveiled by Akinyemi Ashade, Commissioner, Ministry of Finance/ Economic Planning and Budget. In the breakdown, roads, education and transportation top the list of allocation from the 2017 budget of N812.99 billion.
In the budget, tagged: “Golden Jubilee Budget,” presented to the House of Assembly on Tuesday, road infrastructure got the highest allocation with N138.249 billion, followed by education, which got N92.400bn and health, N57.290bn.
Also, Transportation got N51.376bn in the budget, while housing received N50.290bn. Others are: Water, N18.181bn; Tourism, N20.247bn; Agriculture and Food Security, N4.795bn; Environment, N38.129bn; Sports Development, N9.457bn; Commerce and Industry, N6.177bn; Wealth and Employment Creation, N6.250 billion; Women Affairs, N2.193bn; and Social Development, N2.698bn; Governance, N11.098bn; Science and Technology, N11.006bn and Security, Law and Order, N31.246bn.
Giving the breakdown, Ashade, said in the preparation of the 2017 budget, recent developments around the world had been put into consideration, especially in the global and national economy spheres.
“We have maintained a conservative approach in estimating our Federal Allocation due to falling oil prices that was about $41.98 per barrel at the time we finalized the budget; the State expects an increase in Federal allocation through 13% derivation from Oil and Gas in 2017, however, the budget would largely be driven by Internally Generated Revenue (IGR) made up of taxes, rates, levies and so on.
“The 2017 budget will continue to promote massive investments in security, Infrastructure, transport/traffic management, physical and social infrastructural development, environment, health, housing, tourism, power, e- governance, education, agriculture and skill acquisition,” he said.
More so, the 2017 budget is predicated on a Capital/Recurrent Ratio of 63:37 as against 58:42 in 2016 while there will be aggressive growth in IGR through taxes and non-tax revenue to N30bn per month.
According to Ashade, the budget size of N812.998bn would be funded from a total revenue estimate ofN642.849 billion with the balance of N170.150 billion to be funded through a N100bn Bond Issuance Programme and a combination of internal and external loans.
He said the Total Internally Generated Revenue (TIGR) of the budget is approximately N477.942bn (representing 74%) of the Total Revenue, while the remaining N164.907bn (representing 26%) is expected from Federal Transfers, including 13% derivation.
“The Lagos Internal Revenue Service (LIRS) is expected to generate a tidy sum of N360bn, equivalent to 75% of the Total Internally Generated Revenue. We intended to improve on the current 2% revenue to GDP ratio by achieving 5% in 2017 and also bringing more people into the tax net as well as adoption of an automated single billing system.
“The 2017 Proposed Capital Expenditure is proposed at N512.464bn and Recurrent Expenditure is N300.535bn, making up a total expenditure of N812.998billion, this provides an aggregate Capital to Recurrent ratio of 63:37,” he explained.
On the N138.249b earmarked for road infrastructure, the fund will be used to complete the Abule-Egba overhead bridge, Ajah bridge, continued massive road rehabilitation in partnership with the Local Governments/Local Council Development Areas, Murtala Mohammed International Airport Road from Oshodi, Agric-Isawo-Owutu-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-Majoda in Epe and Pen Cinema flyovers, among others.
The N51.376bn budgeted for transportation has been earmarked 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.
“The government is also committed to the expansion of 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,” Ashade said.
On housing, Ashade said the N50.290bn investment would allow government to focus on affordable housing units through rent-to-own schemes (Badagry, Lagoon View Topo-Idale and Imota), while the total sum of N15.291bn out of the allocation is committed to completion of on-going housing estates (Sangotedo, Odo Nasa Agowa, Ikorodu Ibeshe).
On health, N57.290bn earmarked 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.
On education, the N92.4bn earmarked has been set aside for continued 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 the sum of N11.006bn had 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, the sum of N11.098bn has been proposed for spending in the area of governance, which Ashade said N1.250bn 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 explained further that the sum of N3.8bn had been set aside for the 7.5% government share to pension contribution and N7.15bn for Pension Redemption Bond Fund-shortfall.
On women affairs, Ashade explained that N2.193bn had been proposed for various initiatives, such as upkeep and maintenance of skill acquisition centres, special poverty alleviation intervention programme 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 under Commerce for the on-going development of Lekki Free Zone, Industrial Park development, development of enterprise zones, Badagry Deep Sea Port, Eko Atlantic project and other areas.
However, the budget proposed a total of N9.457bn has 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. N18.181bn 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.
The tourism sector, with the sum of N20.247bn will provide for the development of heritage centre for leadership (Lugard House), Centre for Yoruba Culture & History (Lagos House), J.K Randle Centre, transformation of the Onikan Museum, establishment of Museum for Art and Culture in Ikeja, development of tourism hubs in Lagos-West and Lagos-East and the construction of 5 Cultural Theatres in Alimosho,Badagry, Epe, Ikorodu and Ikeja.
More so, the N4.795bn 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 Federation in the area of food production.