Lagos budgets N665.588bn for 2016

Governor Akinwunmi Ambode of Lagos State yesterday presented the state’s 2016 budget proposal of N662.588 billion to the House of Assembly, with a pledge that his administration will not only implement the budget faithfully, but also ensure that it works in the best interest of Lagosians.

The governor, who christened the 2016 budget “The Peoples Budget” said it is an improvement of 26 percent over the budgets of 2014 and 2015 respectively which stood at N489.6 billion individually.

“The increase will enable our government to focus on the present challenges of security, traffic gridlock resolution including physical and social infrastructural development which has thrown up new challenges quite different from what we used to experience and have always known”, he said.

He said the 2016 budget’, which is the first full budget of the present administration will promote massive investment in security, transport and traffic management, physical and social infrastructural development and enhance job creation.

He said the intention of his government is to use the 2016 budget to strategically build new infrastructure, as well as maintain existing ones, adding that wealth and employment creation will also receive adequate attention in the course of the year.

Giving a breakdown of the budget figures, Governor Ambode put the Recurrent Expenditure at N278,909bn while Capital Expenditure stands at N383,678bn, explaining that the Capital to Recurrent ratio is 58:42 as against 51:49 in 2014 and 2015.

The governor also put the total revenue estimate for 2016 fiscal year at N542.873 billion saying the balance of N119.714 billion will be funded through deficit financing constituting 0.41 percent of the state GDP based on 2016 budget alone and a cumulative debt to GDP ratio of about 3 percent.

On the size of the budget, Ambode earmarked N120,508,571,598 for General Public Services representing 18.19 percent, N28,559,021,841 to Public Order and Safety, representing 4.31 percent while Economic Affairs received a lion share of N211,043,408,183 representing 31.85 percent.

In other sectors, Environment got 8.1 percent of the budget totalling N53,043,599,505, Housing and Community Amenities, got N62,713,091,867 representing 9.46 percent, Health got N64,677,679,096 representing 9.76 percent while Recreation, Culture and Religion has N4,636,917,054 which is 0.70 percent of the budget.

Education sector also received N113,379,337,664 representing 17.11 percent of the budget while Social Protection got N4,025,980,116, which is 0.61 of the budget.

Governor Ambode said that due to the falling oil prices, the budget is pegged on $38 dollar per barrel saying it was in line to maintain a conservative approach in estimating the Federal allocation for 2016.

Read more: Vanguard