By Olasunkanmi Akoni, Gbenga Akanmu & Monsur Olowoopejo
Governor Baba-tunde Fashola of Lagos State, Tuesday , presented the 2011 budget proposal of N445.180 billion to Lagos State House of Assembly for approval.

The current budget proposal exceeded the 2010 revised budget of N412 billion by 8.2 percent.

Meanwhile, Speaker, Lagos State House of Assembly, Mr. Adeyemi Ikuforiji, said that the house would not shy away from asking questions and also insist on accountability of past appropriation by laying good foundation for the current one where necessary.

Governor Babatunde Fashola of Lagos State,

Fashola said the focus of the  2011 budget would remain, but not limited to, the following key sectors: law and order; road and transportation; environment; health; education; water; rural development and agriculture.

He said: “This budget will seek to promote greater co-operation with the local governments and Federal Government, especially on roads rehabilitation and power sector reform, as well as entrenchment of Public Private Partnership, PPP, as alternative development strategy for Lagos infrastructure.”

Budget breakdown

The proposed budget has a recurrent expenditure of N196.709 and a capital expenditure of N248.471 billion, while the total revenue stood at N352.320 billion, comprising ordinary revenue, N262.620 billion and Federal Transfer of N89.7 billion.

The recurrent expenditure of N196.709 billion comprises N68.229 billion Total Personnel Cost and N128.480 billion Total Overhead Cost, while the capital receipts stood at N19.261 billion and financing requirement stood at N73.599 billion.

The Governor said: “When this budget increase is valued against the recent published inflation figures of about 13 percent, it will become manifest that the budget has not really increased.

“We have revised the Capital to Recurrent ratio of 60:40 in 2010 to 56:44 in 2011.  The shift towards recurrent expenditure is largely due to the significant growth in our personnel costs as our response to the demand of our workers for improved welfare and remuneration conditions.”

Speaker’s response

Ikuforiji described the budget as an important tool for nation building, accelerated growth and rapid development.

He, however, called on the executive to implement key programmes in the budget, particularly in the areas of rehabilitation of dilapidated roads.

He said: “The Governor should, as a matter of urgency, direct the treasury office to release funds to the agency on public works maintenance to repair damaged roads across the state especially in Alimosho Local Government.”