Lagos State Commissioner for Economic Planning and Budget, Mr Akinyemi Ashade, on Monday, disclosed that the state government will be expending a sum of N126.302bn on Education, while Health will gulp N92.676bn, with Housing and environment taking N59.904bn and N54.582bn respectively in the proposed 2018 Budget.
Commissioner for Economic Planning and Budget, Mr Akinyemi Ashade, said this while giving the breakdown of the budget.
Governor Akinwunmi Ambode had earlier in the day submitted a budget proposal of N1.04trn to the State House of Assembly at a session presided over by the Speaker, Hon. Mudashiru Ajayi Obasa.
Ashade said the state government also planned to spend N135.815bn on roads and infrastructures, N101.358 on Transportation, while a sum of N10.574bn is to be expended on Agriculture and Food Security.
According to him, Tourism will gulp N15.2bn, with sports development to consume a total of N9.059bn.
The further breakdown of the budget shows that Commerce and Industry takes N64.485bn, Wealth and Employment Creation, N6bn, Women Affairs, N2.495bn, youth and social Development, N3.646bn, Governance, N9.86bn, Science and Technology, N23.508bn, Security, Law and order, N37.708bn.
On Pension, the commissioner said the sum of N3.8bn had been set aside for the 7.5% government share to pension contribution and N13.882bn for Pension Redemption bond Fund and shortfall.
Speaking on the debt profile of the state, Ashade, while disclosing that the Ambode administration inherited external loans of N468.471billion which were contracted at an average of N100 to $US1, stated that the state’s net debt stock of N874.38bn represented about 3% of the State GDP.
According to him, the debt service charge to revenue ratio stood at 17.61% compared to 13.32% in 2016 and 12.45% in 2015.
Ashade, however, assured that despite the additional burden arising from the devaluation of the Naira, the state debt service ratio remained very strong on the back of the state’s impressive revenue performance, saying the state had continued to meet its obligations in servicing the debts and paying the loan obligation as at when due.
“Recently in April, 2017, we repaid bonds of N57billion which means the current administration have repaid a total loan stock of N187.113billion.
“Our commitment to meeting our obligations and impressive IGR has been affirmed by the strong ratings the state enjoys locally and internationally,” Ashade said.
“Our fiscal strategy for 2018 will ensure sustainable fiscal balance with the appropriate level of public sector borrowing and acceptable aggregate public debt,” he added.
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