The signing into law of Lagos State’s N662.588billion budget for 2016 a fortnight ago has set the stage for Governor Akinwunmi Ambode to supervise the implementation of his electoral promises to the people of the state, reports Festus Akanbi
If the pledge of Governor Akinwunmi Ambode of Lagos State to roll into action with the state’s 2016 budget, without delay, is anything to take seriously, then Lagos residents will begin to witness a significant turnaround in a matter of time.
This is because the N662.588billion budget is aimed at touching the lives of the people by funding massive investment in security, transport and traffic management, physical and social infrastructural development and job creation.
Apart from the robustness of the fiscal plan, analysts believe the areas of focus by the governor are capable of providing the necessary stability in the state’s economy especially, at a period of declining distributable revenue from the federal purse.
This is because fears are being raised by the unabated decline in the price of crude oil and the attendant decline in revenue accruable to states from the federal government.
Many states are still struggling to pay workers’ salary despite the bailout granted by the federal government late last year.
​​There is no doubt that the hardship experienced in 2015, was evident in the 2016 Appropriation Law of most states across the federation. While some states whittled down their capital expenditure, others are adopting austerity measures and cutting down on overhead to avoid the pitfalls of the past.
Ambitious Budget
Analysts said they were not surprised that Lagos State came up with the biggest budget among the 36 states, afterall, it has continued to act as the nation’s economic capital despite the relocation of the seat of power to Abuja.
While the state stands out as one of the few states that did not benefit from the Federal Government bail-out, its 2016 budget of N662.588billion, the highest ever by any administration in the state, does not suggest a government willing to allow the gloom predictions dampen its resolve to improve on the infrastructural development of the state.
To show his seriousness with state finances, a clear cut arrangement put in place by Governor Ambode has made it possible for his administration to save at least N3billion monthly, owing to the realignment and restructuring of the state civil service.
While some critics might term the Lagos 2016 budget as overambitious and unrealistic, Governor Ambode already foresees a brighter year for Lagos and Lagosians with what he termed “The Peoples Budget” and has already set out to make the budget work for every Lagosian.
At a brief but impressive ceremony witnessed by members of the State Executive Council, Permanent Secretaries, Executive Secretaries of Local Governments and Local Council Development Areas, federal lawmakers and journalists, Governor Ambode penned his signature to the budget, which according to him represents his administration’s article of faith with Lagosians.
From all indications, the 2016 budget, shows an improvement of 26 per cent over the budgets of 2014 and 2015 respectively which stood at N489.6 billion each.
Being the first full budget of his administration, analysts said Governor Ambode understands the high expectations and is thus focused on promoting massive investment in Security, Transport and Traffic management, Physical and Social Infrastructural development and enhance job creation.
Breakdown
A breakdown of the budget figures shows that N278.909bn is earmarked for Recurrent Expenditure; Capital Expenditure stands at N383.678bn, while the Capital to Recurrent ratio is 58:42 as against 51:49 in 2014 and 2015.
For obvious reason, the budget is tailored towards the realization of the governor’s mission geared towards delivering on his promise to make Lagos work for all regardless of age, gender, tribe or status.
He said: “The Y2016 budget of N662.588
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