Budget 2017: We’ll consolidate on our modest achievements – Ambode

Signs N812.998bn appropriation bill into law

LAGOS State governor, Mr Akinwunmi Ambode, on Monday signed the 2017 Appropriation Bill into law, describing the N812.998billion budget as his administration’s contract of inclusive governance with Lagosians and would consolidate on the modest milestones recorded so far.

The newly signed budget represents N150.41billion increase from year 2016 budget of N662.588billion. The budget Capital Expenditure is estimated at N507.816billion while Recurrent Expenditure is N305.182billion.

Ambode, who spoke at the event which took place at the Lagos House, Ikeja, said the focus of the budget would be on key area of Infrastructure, economic, social/ security and sustainable environment.

Ambode, who promised that the state government was committed to a prudent management of resources as well as fiscal discipline, expressed optimism that the national economy, which had been in recession, would rebound.

“We are optimistic on the recovery of our national economy this year. We are encouraged by the budget performance of last year (2016) which stood at 78%.

“Our government is committed to prudent financial management and equitable allocation of resources for the general good and will ensure proper fiscal discipline in the implementation of this Appropriation Law,” he said.

Speaking further, Governor Ambode implored people of the state to cooperate with the government by paying their taxes directly to the state’s purse and not to touts or unauthorised persons and channels so as to make the budget work for them.

“We encourage all tax payers to continue in this spirit and also take advantage of available multi-pay channels in fulfilling their civic obligations. Do not pay to touts or illegal channels. Make sure your tax payments count,” he counselled.

He commended members of the State House of Assembly led by the Speaker, Honourable Mudashiru Obasa, for their forthrightness and speedy consideration and approval of the budget.

“Our goal is to consolidate on the modest milestones recorded in the last eighteen months and propel our state to a path of prosperity in line with our Four Pillars of Development Plan; infrastructure development, economic development, social development and Security and sustainable environment.

“We are encouraged by the budget performance of last year (2016) which stood at 78%. Our total Capital Expenditure in 2017 will be N507.816bn while Recurrent Expenditure is estimated at N305.182bn.

“Our government is committed to prudent financial management and equitable allocation of resources for the general good and will ensure proper fiscal discipline in the implementation of this Appropriation Law,” Ambode.

The Speaker, Honourable Obasa , who was represented by the Chairman, Committee on Appropriation, Honourable Rotimi Olowo, commended Governor Ambode for providing the state with a working and insightful budget that would impact the citizens of the state.
Commissioner for Finance, Mr Akinyemi Ashade, while providing insight on the budget, said that the budget would be funded from a total revenue estimate of N662.848billion with the balance of N170.151billion to be funded through bonds issuance and a combination of internal and external loans.
Asade said that the N30billion expected monthly to partly finance the budget through Internally Generated Revenue (IGR) was achievable, as the state IGR peaked at N30billion in December 2016.
He said the state government was not considering a zero deficit budget in the near future as it was in a hurry to develop the infrastructure of the state.
The commissioner also said that its last bond issuance which raised N47billion out of the N60billion projected did not under perform in the market considering the economic recession.
He described the performance of the 2016 Budget, which stood at 78 per cent as at December 31, as commendable considering that the country was in economic recession though the state was not.
Giving further breakdown of the budget, Ashade disclosed that the state government proposed to spend  N141.692billion on road infrastructure, saying this would include completion of Abule-Egba overhead bridge, Ajah flyover, continue massive road rehabilitation in partnership with the Local Governments/Local Council Development Areas (operation 114 roads), among others.
Others, he said, are ongoing work on 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 and Pen Cinema flyovers, in order to open up the hinterlands, improve connectivity in the state and reduce travel time.