2023 BUDGET ANALYSIS: LAGOS ALLOCATES 27.3% FOR MODERN INFRASTRUCTURE
The Lagos State Government has said that 27.3% of its entire Y2023 Budget amounting to N482.86 Billion will be expended on providing modern infrastructure for the citizenry.
The State Commissioner for Economic Planning and Budget. Mr. Samuel Egube disclosed this at Press Briefing held today at the Bagauda Kaltho Press Centre, Secretariat, Alausa, adding that the Y2023 Budget christened: “Budget of Continuity”, was prepared to continue the good work of the present administration, especially in delivering reliable and sufficient infrastructure that meets the needs of a 21st Century Economy.
Egube said, “The State is totally committed to ensuring that the dividend from its investments in Integrated Transport Infrastructure, which will materialise into the birth of the fully functional light rail (Red-Blue) system, the first of its kind by a sub-national Government in Africa and the 37 km Fourth Mainland Bridge will be felt by the citizens of the State”.
“These will reduce commute time to millions of Lagosians, reduce congestion on the existing Carter, Eko, Third Mainland Bridges and Ikorodu Road, while increasing productivity, quality of life, as well as improving the overall transportation system in the State”, he added.
The Commissioner listed some of the infrastructure captured in the Budget as the Construction of the Second Phase of the Blue Line from Mile 2 to Okokomaiko; Completion of Eight Stadia across the Five IBILE divisions to facilitate youth development, engagement and community sports; Continuous Construction and Rehabilitation of Schools to significantly improve access to quality education; Completion of the 130-Bed New Massey Hospital that will be the largest specialist children hospital in Sub-Saharan Africa.
Others, according to him, include the Completion of the ultra-modern 280-Bed General Hospital serving the people of Ojo and its environs which is currently at 47% completion; the Completion of the Mental Health Facility in Ketu-Ereyun in Epe Local Government; Completion of the Opebi Link Bridge to Maryland that will improve significantly travel time and provide alternative route options in the axis and the Rehabilitation/Upgrading of Phase II Eti-Osa – Lekki-Epe Expressway Project from Eleko T-Junction-Abraham Adesanya among others.
The Commissioner also revealed that the State Government allocated 13% of the Budget for the provision of affordable and world-class education, healthcare and social services for its teeming populace to make the system accessible and affordable. The present administration has also demonstrated its commitment to its continuous investment in the provision of affordable Homes for the people of Lagos through its Social Housing Programme by injecting a total of N67.1 Billion into the sector.
His words, “Some of the Social Housing programmes the Budget targets include the Completion of 444 units of Building projects at Sangotedo Phase II; Completion of 420 units of Building Projects at Ajara, Badagry Phase II and the Construction of 136 units of Building Projects at Ibeshe II among others”.
Egube stated that the State Government’s commitment to its five-year Agric road map had seen to the commissioning of the Imota Rice Mills which will provide support to farmers and improve the food systems generally in the State, adding that the State will invest a total sum of N45.1 Billion on Food Security through Cattle Feedlot Project, Fish Processing Hub programmes and Wholesale Produce Hub & Market to improving wholesomeness of food, reduction in food prices and optimisation of the Agricultural sector.
He averred that the sum of N86 Billion investment in the Public Order and Safety Sector by the Government is geared towards ensuring that Lagos is safe for living, working and investment, just as N12 Billion is earmarked for the Provision of Rescue and Emergency operation equipment for disaster management.
“Provision has also been made for surveillance and body cameras for security monitoring, this is in addition to strengthening intelligence gathering/capacity-building capabilities together with improving the ease of doing business through the Smart-City project, the Lagos new Data Centre project, Eko Excel project, E-GIS and the Oracle upgrade project among others”, he added.
While reviewing the approved Y2022 Budget of ₦1.758 Trillion which had total revenue of ₦1.237 Billion and deficit financing of ₦521.275 Billion, with the Capital to Recurrent Ratio that stood at 66:34 with Capital Expenditure of ₦1.167 Trillion and a Recurrent Expenditure of ₦591.281 Billion. Egube said as of December 31st, 2022, the Budget posted a performance of 74% with Revenue Performance at 77%, while Capital & Recurrent Expenditure performed at 70% & 81% respectively.
He added that the 70% performance of Capex is a result of the late closure of the N134.815 Billion Bond transaction, which was oversubscribed in December 2022 and utilisation deferred to Y2023.
The State approved Y2023 Budget of ₦1.768 Trillion is made up of ₦1.020 Trillion (Capital Expenditure) and ₦748.097 Billion (Recurrent Expenditure-Debt Charges inclusive), resulting in a Capital to Recurrent ratio of 58:42. The total Revenue is estimated at ₦1.418 Trillion, while deficit-funding requirement is ₦350.411 Billion, which at 25% of Total Revenue implies that the Budget is strongly dependent on Revenue. As a result of this, the Commissioner urged the residents and those that have business with the State to be tax conscious and fulfil their responsibilities as and when due.