By Olasunkanmi Akoni & Monsur Olowoopejo

Governor Babatunde Fashola of Lagos State has disclosed that the budget for the 2012 fiscal year, pegged at N49 billion has recorded 72 per cent cumulative third quarter performance.

Fashola, along with the state Commissioner for Budget and Economic Planning Mr. Ben Akabueze, who briefed Newsmen after the quarterly budget review meeting,  at Aalusa, traced the 10 per cent drop in third quarter as opposed to the 75 per cent recorded in the half year review to a number of factors he said were inimical to budget performance.

According to the governor, “The budget is driven by the state government budget trust which is poverty eradication programme, sustainable economy and infrastructural renewal in Lagos. That is where we will continue to concentrate on even in the fourth quarter.

“And we will concentrate on the areas that we set out to achieve during the Economic Summit which is PATH. The third quarter budget performed at 65 per cent which is a drop from what was achieved in the second quarter which was 75 percent. It marches back to what the state achieved in the first quarter. With this drop, the state now has a drop in its cumulative budget performance which is 72 percent.

“But this is not where we want to be. During the second quarter, this was when we utilised the state borrowing power that was contained in the budget. The third quarter was challenging because the federal allocation has started dropping. It accounts for the relatively lower performance”.

Fashola added that the effect of the new amended personal income tax which was signed and back dated, has begun to hit into the state revenue.

“Those were the reason responsible for low budget performance. Other social reasons for the drop were that, during the quarter, there was the month of Ramadan and during this time, the productivity within the state is somehow low”.

He assured that there will be a push back from the state government during the fourth quarter to ensure that the state achieve more than 75 per cent.

He said ,”Part of the things that would be done in the 4th quarter is the erection of more road traffic signs across the state and others. Many of the streets in the state are being light up to ensure proper illumination at night. Except for the drop in the budget performance, the state government has not relented in its effort to construct various social amenities for the residents of the state infrastructural renewal.”