At last, Ambode presents N852.316bn 2019 Budget to Lagos Assembly

Benjamin Omoike and Alade Tasma

Governor Akinwumi Ambode of Lagos on Tuesday presented the budget size of N852.317 billion proposal for 2019 representing 17.06℅ below that of 2018 which stood at N1.046 trillion before the Lagos State House of Assembly, thus ending the controversies that has trailed the presentations and laying of the budget which has finally brought to an end accusations and counter accusations between the executive and the legislature in the last five months. Presenting the details of the budget proposal in an emotional laden voice also in an unusual characteristics at past presentations, the Governor said he had enjoyed the honour of presenting the budget of the state to the Hallowed Chamber and each time, he had come with the enthusiasm and energy to meet his partners in the continuous work for the progress and development of the state. He added that the same enthusiasm was been expressed on Tuesday to present the year 2019 Budget. He said: “Each time I have come here, we have been accorded a very warm and cordial reception by this Honourable House and for this, we are very grateful. This House has been a solid partner in progress and none of the achievements recorded in our state in the past three and half years could have been possible without the support and cooperation of this 8th Assembly. “From the inception of this administration, we focused our attention on nine core Function Groups which are a reflection of our priorities and the needs assessments of the Citizenry. These areas include Security, Transport / Traffic management, Economy – including Tourism and Agriculture, Housing, Education, Health, Infrastructure – Social and Physical, Water, Wealth Creation – Skill Acquisition/Microfinance, E-Governance and Enhanced Capacity Building, Sustainable Environment and Smart City projects. “In the outgoing year however, we experienced a reduction in our revenue projections, which affected our projected performance and our desired implementation of the Y2018 Budget. The overall Budget performance as at November 2018 stood at 60%/₦574,206 billion with actual cumulative total revenue of ₦530,192 billion/64%, Capital Expenditure closed at ₦311,930 billion/49% and Recurrent Expenditure performed at ₦262,276 billion/82%. “In preparing the Year 2019 Budget therefore, we were very mindful of the out-going year performance, the yearnings of our people and the fact that we are going into an election year. Consequently, we are today presenting a Budget that will be all-encompassing, reflect the level of resources that will be available and with special consideration to the completion of major on-going projects in the state. “Mr Speaker, Honourable Members, Distinguished guests, Ladies and Gentlemen, with our priority on completion of major infrastructure projects and smooth transition to the next administration, we are happy to propose a Year 2019 budget of ₦852,316,936,483, (852.317 billion) including a deficit financing of N77.086bn which is expected to be sourced from internal loans and other sources. “Consequently, the 2019 Budget is projected to consolidate on the economic gains made so far by capitalising on realistic, budget friendly programmes and projects. “This proposed budget has the following key components: Recurrent Expenditure- ₦ 389.560bn; Capital Expenditure – ₦ 462.757bn; and Capital/Recurrent Ratio – 54:46 “The projected total revenue for Year 2019 is ₦775.231 billion, of which ₦606.291 billion is expected to be generated internally, ₦168.940 billion is expected from Federal Transfers while a total of ₦77.086 billion will be sourced through deficit financing within our medium term expenditure framework. The breakdown of the allocations is as follows will be rendered by the Ministry of Budget and Planning and Finance subsequently. “In 2019, as was with our previous budgets, Economic Affairs still dominates the sectoral allocation of the proposed budget. This is due to our continued focus on the completion of major on-going projects such as: Oshodi-Murtala Mohammed International Airport Road; Agege Pen Cinema Flyover; Phase II of Aradagun-Iworo -Epeme Road, Oshodi Interchange Terminal; completion of JK Randle Complex, Onikan Stadium; Imota Rice Mill; Renovation/Furnishing of Lagos Revenue House, amongst others in order to meet their specified deliverable outcomes without any bias or prejudice to others. “We are confident that the revenues of the State will improve this year by consolidating on the already established public financial management and technology-driven revenue reforms; through data integration and use of multi-payment channels. “Mr. Speaker and Honourable members, the Year 2019 Budget has been carefully planned to accommodate all and sundry; women, youth and physically challenged, young and old. We will continue to spread development to all part of our state even as we embark on effective transition knowing fully well that the implementation, failure or success of the Budget depend on all of us”. In his address, the Speaker of the House, Rt. Hon. Mudashiru Obasa, thanked those he called friends of the state and that of the Lagos Assembly for their intervention in the crisis that had engulfed the two arms of government over the infractions committed on the yet-to-be presented budget. Obasa specifically thanked Oba Rilwan Akiolu, Alhaji Musiliu Smith, members of Conference of Speakers of State Legislatures of Nigeria, all members of Governing Advisory Council (GAC), the Vice President of the Federal Republic of Nigeria, Prof. Yemi Oshinbajo and the APC national leader, Ashiwaju Bola Ahmed Tinubu, for their concerted efforts towards ensuring that peace reign supreme among all the three arms of government in Lagos State. The Speaker spelt out the role of budget in the economy of the state and went ahead to quote section 121 of the 1999 constitution which stipulated that the Governor must prepare and lay the budget before the House, which now creates the avenue to incur expenditure. “All the arms of government must work together to ensure economic growth and human development. We also need to know that infrastructure of the state is crucial, and the position of Lagos State is germane in Nigeria and its West African suburbs. Being the fifth largest economy in Africa, everything must be done to sustain the leadership quality of Lagos State in all spheres. “However, fallout of the budget brawl has led to series of negative publications both on social media and in the print media, which are being sponsored by a faceless group calling themselves the Legislative Probity and Accountability (LPA) led by one Olu Fajana with its pseudonym. This started immediately the misunderstanding between the Executive and Legislative came up in respect of the Y2019 budget, which means that such could not be ruled out to have emanated from the Executive. “A section of the media has even been mischievously misled into sensationally writing all manners of write-ups against this assembly. “Some of our friends in the media are personalising the issue thereby misinforming the public. The fact of the matter is that the issue is between one arm of government and another. What was at stake then was nothing but the matter of appropriation. “Unfortunately, no one from the Executive has risen to refute the baseless allegations. Since no one has come up to address this, it is incumbent on us then to come forward and debunk the allegations. As such, I use this medium to challenge the governor, the Finance Commissioner and the Accountant General of the state to prove that we have been collecting N800 million per month since the onset of this administration. Thank God the governor is before us here today; so also, is the Finance commissioner sitting in this hallowed chamber. I likewise challenge the faceless group to prove that this Assembly has been collecting N800 million per month as alleged,” the Speaker concluded. Recall that the issue of 2019 budget had led to a confrontation between the executive and legislative arms of government in the state culminating into an impeachment threat by the State lawmakers before the intervention of national leader of the APC, Bola Tinubu and other leaders of the party led to the dropping of the impeachment threat.