Lagos To Borrow N66.4 Billion To Finance 2012 Budget

pmnews-placeholder

The Lagos State Government is to borrow N66.4 billion to finance this year’s budget, says Commissioner for Economic Planning and Budget, Mr. Ben Akabueze.

The State’s deficit budget as a percentage of gross domestic product, GDP stood at 1.33 percent.

Fashola had on Tuesday signed the N491 billion 2012 budget into law after the State House of Assembly passed it into law last Friday.

Giving an analysis of the budget breakdown at the Government Secretariat, Alausa, Ikeja in Lagos, South West Nigeria on Thursday, Akabueze disclosed that the N66.4 billion to be borrowed would be used to finance part of the Capital Expenditure of N258.321 billion.

According to him, the remaining balance of N191.9 billion in the Capital Expenditure would be sourced by the government.

The state government could explore its financing sources both locally and externally and could realise N145.593 billion. The government could borrow N30 billion under the Development Policy Operation, DPO of the World Bank; N27.66 billion from other external sources and N37.93 billion from internal loans as well as source for N50 billion through bond issue.

The government also intends to use N11.85 billion to service its past debt this year. The breakdown is as follows: debt charges (external loans), N1.050 billion; debt charges (internal loans), N6.958 billion and debt charges (bond issuance), N3.842 billion.

However, the total Capital Expenditure of N258.321 billion comprises Core Capital, N224.368 billion; Capital Development (Dedicated), N21.920 billion; Risk Retention Fund, N100 million; Grants, N3.468 billion; Counterpart Funding, N3.465 billion and Special Expenditure, N5 billion.

In the sectoral allocation, Akabueze said percentage allocated to sectors reflected government priorities and sustenance of past trend as highest priority goes to Economic Affairs Sector, in line with the policy thrust of government on infrastructure while health and education sectors were being gradually notched.

Related News

In the budget, Economic Affairs received the highest share of N155.2 billion, comprising N19 billion recurrent expenditure and N136.2 billion capital expenditure while General Public Service followed suit with a N107.5 billion allocation, comprising N84.6 billion recurrent expenditure and N19.8 billion capital expenditure.

The state government intends to protect its environment with N44.2 billion this year and budgets N43.8 billion for provision of housing and community amenities, while public order and safety will gulp N13.8 billion.

Education received a boost in this year’s budget with N72.2 billion allocated to it. This comprises N58.8 billion recurrent expenditure and N13.4 billion capital expenditure while the Health sector is allocated N40.5 billion, comprising N28.3 billion recurrent expenditure and N12.3 billion capital expenditure.

Others are Recreation, Culture and Religion – N11.3 billion comprising N8.9 billion recurrent expenditure and N2.5 billion capital expenditure and Social Protection – N3.4 billion comprising N1.6 billion recurrent expenditure and N1.8 billion capital expenditure.

“This administration has run government transparently and has closely monitored the implementation of the budget mainly through revenue generation and proper project management/monitoring.

“A major strategy has been the promotion of Public-Private-Partnership (PPP) in some spheres of the state’s economy, especially in Public Order/Safety and infrastructure. In spite of the current global financial crisis and unfavourable macro economic variables, this administration remains resolutely committed to the transformation of Lagos State into Africa’s model megacity,” Akabueze stated.

“We will also continue to partner with all stakeholders to achieve improved governance, economic growth and social responsibility that characterise modern city governments. Worthy of mention is the strategic partnership with the private sector and development partners to organise the Lagos Economic Summit (Ehingbeti), a forum for generation of ideas for the development of the state,” he added.

—Kazeem Ugbodaga

Load more