Fashola Presents N497b 2013 Budget

Governor Babatunde Fashola of Lagos State today presented a budget of N497.277 billion to the State House of Assembly for approval for the 2013 fiscal year.

The budget is N5.477 billion higher than the N491.8 billion budgeted for 2012. This represents 1.08 percent increase over the previous budget.

The budget has a capital expenditure of N268.364 billion and a recurrent expenditure of N228.913 billion.

Presenting the budget to the Assembly, Fashola said the Capital to Recurrent ratio of the budget stood at 54:46  as against 53:47 in 2012, adding that the proposed deficit financing requirement is N40.537 billion which is 0.3% of the State’s Gross Domestic Product, GDP compared to 1.19% in year 2012.

Analysis of the budget shows that the components of the total overhead cost of N139.173bn are: Overhead Cost, N66.992bn; Dedication Expenditure, N21.753bn; Subvention, N31.892bn; Debt Charge (External), N0.609 bn; Debt Charges (Internal), N15.938bn and Debt Charge (Bond), N1.989bn.

The Capital Receipts of the budget is estimated at N22.912bn made up of: Grants, N3.000bn; Investment Income, N0.332bn and other Capital Receipts, N19.580bn.

Capital expenditure of N268.364bn consists of: Core Capital, N237.209bn; Capital Development (Dedicated), N19.580bn; Grants, N3.000bn; Counterpart Funding, N2.500bn; Special Expenditure, N5.000 bn; Risk Retention Fund, N0.075 bn and Contingency Reserve, N1.000bn.

On the sectoral breakdown, the budget shows that Economic Affairs received the lion share of N156.273 bn, followed by General Public Service, N114.076 bn; Education, N64.343 bn; Housing and Community Amenities, N46.149 bn and Health, N42.498 bn.

Others are: Public Order & Safety, N18.799 bn; Environmental Protection, N44.131b;

Recreation, Culture & Religion, N5.749b; Social Protection, N3.259b and Contingency, N2 bn.

Speaking on critical issues in the state, Fashola said he regretted the Kuramo disaster which led to the loss of lives on 17 August, 2012, adding that the ocean surge also affected Goshen Beach Estate, Oniru Estate and Alpha Beach.

“Some have credited our survival to luck. I do not. I believe we must acknowledge the vision and industry of men and officers in the Ministry of the Environment and the Ministry of Waterfront Infrastructure Development, who have faithfully implemented the protection wall project at the Eko-Atlantic Beach Project which helped us resist the tragedy that might have befallen us as waves that were as high as 7 metres buffeted the coast of Lagos.

“The vigorous expansion of drainage channels across Lagos and in particular on the Lekki axis helped us to channel the water from the sea into the natural drainage that the Lagos lagoon provides, through the constructed drainage channels in a way that minimised the impact of the storm.

“Our hearts reach out to other states who have also been afflicted with flooding, and we acknowledge the receipt of N400m given to us by the Federal Government which categorized us a Category B Risk State, although we view our risk and problems differently,” he said.

On the performance of students from Lagos in WASCE, Fashola said there had been remarkable improvement, saying “we are now in the top 10 in the country for WASCE result performance. This is a huge leap from 19% average pass in 2011.

“While we are confident on improving, much work remains to be done in that sector and we are focused and committed. Our technical colleges have started producing graduates with skills that you the employers will be proud of.

“Our students are holding their own and competing successfully in quiz programmes , debates and sports and I am enthused by the work of the ministry and all our education personnel especially the teachers.”

—Kazeem Ugbodaga, Eromosele Ebhomele