The outgoing governor of Lagos State, Akinwunmi Ambode, on Tuesday presented the 2019 budget proposal of N852.316 billion to the House of Assembly.
He said the proposals were carefully prepared to be all-encompassing and dedicated to complete major ongoing projects in the state.
Mr Ambode said 54 per cent of the budget – ₦462.757 billion – had been earmarked for capital expenditure while 46 per cent – ₦389.560 billion had been dedicated to recurrent expenditure.
He said key projects such as the Oshodi-Murtala Muhammed International Airport Road and Oshodi Interchange Terminal, among others would be completed.
The 2019 budget presentation came amidst a protracted disagreement between the executive and the legislature resulting in the latter threatening to begin impeachment proceedings against the governor.
The lawmakers accused the governor of illegal budgetary spendings and gross misconduct.
The crisis, however, was settled last Sunday as the All Progressives Congress national leader, Bola Tinubu, and other party leaders waded in.
Mr Ambode said from the inception of his administration, nine key areas were given priority after careful assessment of the needs of the citizens. He said such had informed the massive investment in the said sectors.
Giving details of what informed the budget size, Mr Ambode said the performance of the 2018 budget of N1.046 trillion as at November 2018 stood at 60 per cent owing to a reduction in revenue projections, while the total revenue stood at N530.192 billion.
“In the outgoing year, however, we experienced a reduction in our revenue projections, which affected our projected performance and our desired implementation of the Y2018 Budget,” Mr Ambode said.
“The overall Budget performance as at November 2018 stood at 60 percent/N574,206billion with actual cumulative total revenue of N530,192billion/64 per cent, Capital Expenditure closed at N311,930billion/49 per cent and Recurrent Expenditure performed at N262,276billion/82 per cent.
“In preparing the Year 2019 Budget, therefore, we were very mindful of the out-going year performance, the yearnings of our people and the fact that we are going into an election year. Consequently, we are today presenting a Budget that will be all-encompassing, reflect the level of resources that will be available and with special consideration to the completion of major on-going projects in the State.”
While outlining the key components of the 2019 budget and the sectoral allocations, the governor said with priority given to completion of major infrastructure projects and smooth transition to the next administration, the government was proposing a total budget size of ‘N852,316,936,483,’ including a deficit financing of N77.086 billion which is expected to be sourced from internal loans and other sources.
“The projected total revenue for Year 2019 is ₦775.231billion, of which ₦606.291billion is expected to be generated internally,₦168.940billion is expected from Federal Transfers while a total of ₦77.086billion will be sourced through deficit financing within our medium term expenditure framework.
“In 2019, as was with our previous budgets, Economic Affairs still dominates the sectoral allocation of the proposed budget.
“This is due to our continued focus on the completion of major on-going projects such as: Oshodi-Murtala Mohammed International Airport Road; Agege Pen Cinema Flyover; Phase II of Aradagun-Iworo -Epeme Road, Oshodi Interchange Terminal; completion of JK Randle Complex, Onikan Stadium; Imota Rice Mill; Renovation/Furnishing of Lagos Revenue House, amongst others in order to meet their specified deliverable outcomes without any bias or prejudice to others.”
Expressing optimism that the revenue of the state would improve in 2019, Mr Ambode said the government had begun consolidating on the already established public financial management and technology-driven revenue reforms through data integration and use of multi-payment channels, just as he said that every stratum of the society would benefit from the budget.
“The Year 2019 Budget has been carefully planned to accommodate all and sundry; women, youth and physically challenged, young and old. We will continue to spread development to all part of our state even as we embark on effective transition knowing fully well that the implementation, failure or success of the Budget depend on all of us,” he said.
In his address, Mudashiru Obasa, the Speaker of the Lagos House of Assembly, denied the allegations that the lawmakers spend ₦800 monthly as running cost.
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