BY Olasunkomi Akoni & Gbenga Akanmu
LAGOS — The Lagos State House of Assembly has approved the re-ordering/augmentation of the year 2011 budget of the state requested by Governor Babatunde Fashola.
The approval was given at plenary, yesterday, after adopting the recommendations of the ad-hoc committee set-up last week to look into the request.
The re-ordering from Capital Expenditure amounted to N15.6 billion while N6.5 billion was re-ordered from Recurrent Expenditure. The re-ordering, however, did not alter the N450.775 billion approved originally by the House earlier in the year.
The House re-ordered un-utilised funds from some specific heads to the more needy areas for efficient performance.
The committee said the re-ordering became inevitable because some ministries, departments and donor agencies would not be able to access their funds for one reason or the other before the year runs out, hence their funds could be utilised for meaningful developments in the state.
The committee also said the overall Internal Generated Revenue of the state was below 80 per cent. It indicted the Ministry of Economic Planning and Budget for not consulting with some of the concerned donor Ministries, Departments and Agencies, MDAs, before embarking on the proposed deductions.
The House, therefore, advised the ministry to regularly dialogue with affected MDAs before carrying out any future budget exercise.
Governor Fashola had last week wrote to the lawmakers asking for re-ordering/augmentation of Y2011 budget by redistributing un-utilised funds to other areas of critical need so as to engender optimum budget performance in the state.
The budget he said had witnessed low performance in the mid-year review due to disruption to the revenue drive caused by the elections; implementation of the new salary scheme and recent flooding in the state which necessitated the proposed adjustment of the budget.