Fashola exhausted 2015 recurrent budget by May 29 – Ambode

Total Reordered: N23. 975 billion

Recurrent: N18.278billion

Capital:   N5.697bn

Budget Performance by June 2015

Recurrent : 98 %

Capital: 29%

 

Emmanuel Thomas, Lagos

 

September 15, 2015 – Lagos State Governor, Mr. Akinwunmi Ambode has written to the Lagos State House of Assembly, requesting the lawmakers to reorder the sum of N23.975 billion from N489.690 billion budgeted for the year 2015.

The 2015 budget was given ascent by the former governor of the state, Mr. Babatunde Fashola in the year 2014.

According to the letter dated September 3rd, 2015 which was read on the floor of the House by  Acting Clerk, Wasiu Bisiriyu,  the sum of N23.97bn would be re-ordered, out of  which N18.278bn will be used for capital projects, while N5.697bn will be devoted  for recurrent expenditure.

The Governor noted that the recurrent expenditure presently stood at 97%, while capital expenditure performed as low as 29%, saying there was the need to follow the tradition of budget performance of 51 percent for capital expenditure and 49 percent for recurrent.

According to him,  some of the projects that would need attention include, construction of pedestrian bridges at Ojodu Berger and Okota, construction of fly-over bridges at Ajah Roundabout and Pen Cinema, Agege.

 

Others are construction of Blue Light Rail project; continuation of the construction of Lekki-Epe Expressway; acquisition of emergency/rescue helicopters and heavy duty equipment (cranes and forklift) and for Employment Trust Fund and Wealth Creation Programmes.

The letter read in part, “It is worthy of note that we are constrained by the fact that there are no new revenue sources for the remaining months of the year, and as a result we would not be in a position to propose a supplementary Budget, hence, the recourse to a re-ordering of the Y2015 Budget.

“The budget as at 30th of June 2015, had a 63 percent, overall performance; a far cry from the set target of 100 percent. When further analysed, the recurrent expenditure stood at 97 percent, while capital expenditure was at an abysmal 29 percent performance, portending a 24:76 capital\recurrent ratio.

“This level of per has made it imperative to go back to the drawing board to structure a more conscientious approach to tilt our total capital investment in the remaining months of Y2015 in order to meet the target capital\recurrent of 51:49,” Ambode said.

Meanwhile, the Lagos State House Assembly has set up an eight member Ad-Hoc committee  to look into the proposal. Members of the committee include Rotimi Olowo from Shomolu Constituency I as Chairman. Other members are Desmond Elliot, Ibrahim Layode, Saka Fafunmi, Fatai Mojeed, Oluyinka Ogundimu, Kazeem Alimi and Rasheed Makinde.

Members of the committee are to report back to the House on Tuesday September, 22, 2015.