Posted by By VALERIE OMOIKHUDU on
The Lagos State Governor, Babatunde Fashola has proposed N403.401 billion budget for the 2008 fiscal year to state House of Assembly.
The Lagos State Governor, Babatunde Fashola has proposed N403.401 billion budget for the 2008 fiscal year to state House of Assembly.
The budget which was christened 'Great leap budget" comprises N159.5 billion as recurrent expenditure and N244 billion capital expenditure comparatively. According to Fashola, the proposed amount is N128.639 billion higher than the 2007 revised budget of N274.762 billion, while a deficit of N44.3 billion, equivalent to about two per cent (1.95 per cent) of the state's Gross Domestic Product (GDP) is provided, according to the Governor, 'in keeping with acceptable financial standard and global norm."
Fashola stated that N212.4 billion has been proposed as ordinary revenue, comprising of N151.3 billion, accounting for 71.20 per cent as Internally Generated Revenue (IGR); Statutory allocation of N24 billion (19.77 per cent); excess crude of N13.5 billion (6.32 per cent) and other revenue (dedicated) of N5.7 billion (2.70 per cent). The governor disclosed the recurrent expenditure of N159.447 billion was earmarked for the servicing of state government's machinery, as well as the payments of salaries, allowances, pensions and gratuities of the public service.
Fashola maintained that the total personnel cost would be N46.6 billion, total overhead cost, N112.8 billion; subventions, N15 billion; overhead cost, N75.6 billion; transfer to other funds, N50 million while N22.2 billion is to be spent on public debt charge. He explained further, the total capital receipts proposed for the next fiscal year as N199.7 billion, against the 2007 N86.6 billion, stressing, 'the major capital receipts components in 2008 include: internal loans of N12 billion (18 per cent), bond issue: N75 billion (51.12 per cent) and Value Added Tax (VAT) N25 billion (17.04 per cent). 'Other contributory items are N8 billion receipts (5.45 per cent) from matching grants (donor agencies), N3.5 billion (2.04 per cent) capital contribution (prime lands/other estates), N9.415 billion (6.42 per cent) from other capital contributions and recurrent surplus of N53 billion," he highlighted.
Explaining that N244 billion was earmarked for total capital expenditure, comprising of core capital of N218.4 billion, Fashola stated that the state would also spend N9.415 billion on capital development/others; matching grants N8 billion, counterpart fund: N3.2 billion and special expenditure: N5 billion.
Fashola said: 'The revenue projections are consistent with reforms being carried out to boost the state IGR accordingly, all Revenue Generating Agencies (RGAS) are to redouble their efforts not only to meet revenue targets but to surpass the present level of their achievements."
'Indeed, it is imperative for all revenue agencies to be more aggressive in 2008, such that enough funds will be available for the execution of development and people-oriented programmes/projects without undue reliance on statutory allocation from the federation account and internal/external loans," he directed.
He, however, urged the private sector to partner with his administration by investing in the provision of public infrastructure as an essential ingredient of participatory democracy, applauding the state Assembly for its timely support to his government, especially the speed with which it approved the N35.9 billion supplementary budget presented to House for the smooth take off of his administration in May, 2007.
Reacting to the budget presentation, the immediate past governor, Senator Bola Tinubu described the budget as an incisive one, saying, 'It portrays a true commitment to continuity, in the state administration."