By OLUWOLE FAROTIMI and CHINELO OBOGO
Governor Babatunde Fashola of Lagos State yesterday presented a budget of N497.277 billion to the state House of Assembly for approval for the 2013 fiscal year. A breakdown of the budget shows a capital expenditure of N268.364 billion and a recurrent expenditure of N228.913 billion.
The budget presented by the governor before a high capacity audience of party faithful has components of the total overhead costs of N139.173 billion which include overhead cost, N66.992 billion; dedication expenditure, N21.753 billion; subvention, N31.892 billion; debt charge (external), N0.609 billion; debt charges (internal), N15.938 billion and debt charge (bond), N1.989 billion.
The capital receipt of the budget, which is estimated at N22.912 billion is made up of grants, N3.000 billion; investment income, N0.332 billion and other capital receipts, N19.580 billion. Further analysis of the capital expenditure of N268.364 billion consists of core capital, N237.209 billion; capital development (dedicated), N19.580 billion; grants, N3.000 billion; counterpart funding, N2.500 billion; special expenditure, N5.000 billion; risk retention fund, N0.075 billion and contingency reserve, N1.000 billion.
Analysis of the different sectors of the budget shows that economic affairs received the lion share of N156.273 billion, followed by general public service, N114.076 billion with education gulping N64.343 billion; housing and community amenities, N46.149 billion and health, N42.498 billion. Others are public order and safety, N18.799 billion; environmental protection, N44.131 billion. Daily Sun observed that the budget is higher than that of the N491.8 billion budgeted for 2012 with N5.477 billion.
This represents 1.08 percent increase over the previous budget. 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 percent of the state’s Gross Domestic Product (GDP) compared to 1.19 percent in 2012. Continuing, he said recreation, culture and religion, would gulp N5.749 billion; social protection, N3.259 billion and contingency, N2 billion.
Responding, the Speaker, Lagos State House of Assembly, Adeyemi Ikuforiji, who received the 2013 budget said though the House would scrutinise it with an eagle eye, it would give urgent attention to the bill. He noted that the presentation of the budget was significant because the lives and destinies of almost 20 million Lagosians were hinged on the appropriation bill, adding that the expectations of the people were high.
Ikuforiji said some challenges requiring urgent attention included deplorable state of roads despite the huge investment and painstaking efforts the administration had made in that sector.