Press Releases

Y2010 Budget: Fashola Presents N429.6 Budget Of Consolidation

Nov 17, 2009 - Lagos State Governor, Mr. Babatunde Fashola (SAN), Tuesday sought the approval of the State House of Assembly to spend N429.596 billion as the State’s 2010 Budget with assurance that the amount will be used to complete and consolidate all projects and programmes already on-going while only viable new initiatives will be undertaken.

Aptly tagged Budget of Consolidation, the 2010 Budget, which comes ahead of any other in the country, including the Federal Government, represents an increase of N24.6 billion over the 2009 Budget which was tagged Budget of Accelerated Growth.

Of this amount, N307.027 billion represents the Total Revenue projection of the Government which comprises of Internally Generated Revenue (IGR) estimate of N204 billion, Dedicated Revenue estimate of N20.027 billion, Federal Transfer projection of N78 billion and Extra-Ordinary revenue estimate of N5 billion.

In the highlights of the Budget, presented at the Chambers of the House, Capital Expenditure, in keeping with tradition, took the lion share with N250.778 billion as against the Recurrent Expenditure estimated at N178.818 billion. It also represents an increase of N5.064 billion over that of the 2009 Budget which stood at N245.714 billion.

The Capital Expenditures Estimate is made up of Core Capital with N209.207 billion, Capital Development N22.804 billion, Matching Grants N5.021 billion, Counterpart Funding N5.246 and Special Expenditure N8.500 billion while Recurrent Expenditure is made up of Total Personnel Cost of N55.079 billion and Total Overhead Cost of N123.739 billion.

Detailed Components of the Total Overhead Cost comprise Overhead Cost N67.002 billion, Subventions N18.977 billion, Transfer to other funds N0.050 billion, Public Debt Charge N17.683 billion and Dedicated Expenditure N20.027 billion.

Details of the Budget further showed that Economic Affairs took the bulk of the budget, netting N145.160 billion or 33.7 percent of the total budget. This also represents an increase of N36.005 over the N145.160 allocated to that sector in 2009.

On the heels of Economic Affairs, according to the details, is the General Public Service which takes N105.607 billion or 24. 58 percent of the total budget followed by Education and Health which respectively took N60.041 billion or 13.98 percent and N30.219 billion or 7.03 percent of the total budget.

Housing and Community Amenities and Environmental Protection respectively got N36.917 billion or 8.59 percent and N28.710 billion or 6.68 percent while Public Order and Safety, Recreation, Culture and Religion and Social Protection respectively got N10.550 billion or 2.46 percent, N9.375 billion or 2.18 percent and N3.018 billion or 0.70 percent.

Governor Fashola, who described the Y2010 Budget as a critical bridge to the attainment of a resounding economic success for Lagos, outlined the key goals and strategies that will drive the budget to include, aggressive Revenue generation, completion of on-going infrastructure projects, maintenance of existing infrastructural facilities and public utilities and human capital and institutional reforms in the State’s Civil Service.

Others, according to the Governor are mitigation of global warming through greening, beautification programmes and other initiatives, Teachers’ welfare enhancement, enhancement of community-based vocational Education, sustenance of the State’s free Healthcare Services, Assistance/Empowerment of farmers/fishermen for food production and processing and expansion/construction of new water schemes.

Governor Fashola said in allocating funds to the various sectors of the State’s Economy, Government is conscious of its commitment to ensuring that no project or programme is abandoned while managing the State’s finances for optimum benefit of the populace.

He said Government’s emphasis on the maintenance of public order and safety goes beyond simply combating crime to taking more people off the streets by creating jobs, alleviating poverty and reducing the desperation that feeds crime.

“We are already reaping in this budget the benefit of our previous massive investment in key agencies and sectors”, Governor Fashola said pointing out that the sustained investment in such agencies as Lagos Waste Management Agency (LAWMA), Lagos State Water Corporation (LSWC) and the Lagos State Advertising Agency (LASAA) has enhanced their capacity to run on their own strength and reducing overhead costs on them in the 2010 Budget.

According to the Governor, “The sectoral allocation reflects the immense success we have recorded in our Public Private Partnership Schemes in different areas including the waste to wealth projects, the site and service schemes of the New Town Development Authority (NTDA) and the development of new housing schemes by the Ministry of Housing”.

“We are also placing greater emphasis in the Y2010 Budget in improving the quality of life in our rural areas particularly through Agriculture-based Micro-finance funding under the existing framework of the Lagos State Micro Finance Initiative (LASMI)”, the Governor said, adding that the objective is to boost the rural economy, create rural-based employment and encourage people to stay within their environment which, according to him “will enjoy greater local economic buoyancy”.

Government, he said, has also created in the budget investment incentive packages to boost economic growth and mitigate the liquidity crunch in the economy, listing such initiatives to include bringing down some of the rates to reduce cost of land transactions, planning fees and mortgage rates with a view to stimulating domestic investment both locally and through the repatriation of funds from the diaspora.

Earlier, while reviewing the achievement of the 2009 budget, Governor Fashola said the major feature of the period has been the completion and handing over of a number of life-changing projects, programmes and policies which the Government had promised the people at inception.

Such projects, according to him, include traffic grid lock improvement and re-engineering initiatives on the outer Marina to link Ahmadu Bello Way, traffic grid lock re-engineering initiative on the right turn of the descent of the Five Cowrie Bridge and the commissioning of the New City Link boats operated by City Link Transit Group in a Public Private Partnership agreement with the Lagos State Government “as part of our efforts to reduce the pressure on our roads through the maximization of our water ways”.

Some of the projects also completed within this quarter, the Governor said, include second phase of the Bar Beach Shoreline, the Adetokunbo Ademola Road in Victoria Island done in partnership with Eko Hotels PLC as well as the reclaimed, reconstructed and beautified Muri Okunola Park among numerous other projects spanning across the Health, Finance, Transportation, Education, the Environment, Sports and Security.

Governor Fashola said, however, that the necessary condition for achieving the objectives of the Y2010 budget and that of Lagos State as a Model Mega City “is the renewal of the soft infrastructure of the hearts and minds of our people”, adding, “There is a set of habits, orientations and attitudes necessary to maintain not only the physical structure but the very idea of civilized co-existence in a modern community”.

“Unless a critical mass of the population instinctively imbibe these qualities, society will ceaselessly degenerate to chaos and anarchy. This is why we are committed to initiating and sustaining massive attitudinal reorientation campaigns to back up our on-going radical modernization of infrastructure and social service delivery in Lagos State”, the Governor said.

Governor Fashola commended the immediate past administration in the State for what he described as its path-finding work and the efforts it has taken since 1999 to get the State to where it is today. He also described the Action Congress as representing the promise of a model of progressive thinking and democratic content adding, “I understand that it is the burden of our generation to deliver that promise with the support and guidance of our leaders”.

“It will take a lot of hard work, it will require a great deal of sacrifice, it will demand tremendous individual and collective discipline. But I have no doubt that as a State, in the shortest possible time, realize our manifest destiny and rank among the most stable, secure and prosperous Mega cities on earth

Later in his remarks, the Speaker of the State House of Assembly, RT Hon Adeyemi Ikuforiji appreciated the Governor and all members of his team for keeping the ball of progress rolling in Lagos State, adding that his efforts is well appreciated in building on the foundation laid by his predecessor in office.

He also appreciated the efforts of the State Governor in realization of the mega city status and the improved security situation in the state, adding that members of the Nigeria Security Agencies like the Police, Army, Navy and State Security Services Corporate bodies deserves commendation.

While assuring the State Government of the speedy consideration of the financial proposal by the House, he advised that the cooperation of the members of the executive arm, including heads of extra ministerial departments, is required to make the speedy reviewing possible.

Mr. Ikuforiji explained that on their part, the lawmakers will intensify efforts to redefine its legislative roles by enacting new laws for the purpose of creating opportunities for the people and businesses to grow in the State.

The Governor later presented the 2010 draft Appropriation bill to the Speaker of the State House of Assembly.

Prominent among those who witnessed the budget presentation were Deputy Governor, Princess Sarah Adebisi Sosan, former Governor, Asiwaju Bola Ahmed Tinubu, members of the State Executive Council, Oba of Lagos, HRM Oba Rilwan Aremu Akiolu I, Lagos State Chairman of the Action Congress, Chief Oladele Ajomale, Governorship Candidate of the Action Congress in Osun State, Engr Rauf Aregbesola, Chief Imam of Lagos, Alhaji Akinola Ibrahim, founder of the Oodua People’s Congress (OPC) Dr. Fredrick Fasehun, traditional rulers, Captains of Industries, including representatives of the Presidents of the Nigerian Stock Exchange and Chamber of Commerce, as well as members of the Organised Private Sector.