The proposed Y2017 budget (“The Golden Jubilee Budget”) has a size of N812.998bn as against N662.588bn in Y2016, a difference of N150.41bn, representing a percentage increase of 18.5%. The Total Revenue is put at N642.849bn with a deficit financing of N170.150bn.
Implementation of Y 2016 Budget
Please recall that the state Y2016 Budget was N662.588bn with a Total Revenue of N542.874 and a deficit financing of N 119.715bn. As at 31st October, 2016, it performed 71%. The Total Revenue on the other part has performed 76%. I strongly believe that by the time we present the full year budget performance, the Y2016 budget performance would have improved to about 86% as a result of various measures that has been taken by this administration to drive the implementation and performance of the budget.
Key Highlights of Y2017 Proposed Budget
In the preparation of Y2017 budget, recent developments around the world have been put into consideration, especially in the Global and National Economy spheres. We have maintained a conservative approach in estimating our Federal Allocation due to falling oil prices that was about $41.98 per barrel at the time we finalized the budget. The State expects an increase in Federal allocation through 13% derivation from Oil & Gas in 2017; however, the budget would largely be driven by Internally Generated Revenue (IGR) made up of taxes, rates, levies, etc.
The Y2017 budget will continue to promote massive investments in Security, Infrastructure, Transport/Traffic Management, Physical and Social infrastructural development, Environment, Health, Housing, Tourism, Power, e-Governance, Education, Agriculture and Skill Acquisition.
Underlining Principles of Y2017 Budget includes: Continuous Payment of Outstanding Liabilities; Completion of all On-going Projects; Planned and Systematic maintenance of existing/new infrastructural facilities, Sustenance of the Goals of Job Creation, Poverty Eradication and Wealth Creation as well as Continual and Efficient Service Delivery to the citizens. Above all, priority is given to projects that will be completed by Q2 2018.
Fiscal Strategy: Entrench sustainable government expenditure using realistic revenue projections; Capital/Recurrent Ratio of 63:37 is proposed for Y2017 as against 58:42 in Y2016; aggressive growth in IGR through taxes and non-tax revenue to N30bn per month; full deployment of Oracle Business Solutions to eliminate Revenue leakages; sustainable fiscal balance with appropriate level of public sector borrowing and acceptable aggregate public debt; foster a robust environment for increased private sector investments through PPP initiatives and other strategies for increased Foreign Direct Investment (FDI).
The Governor’s goal of enhancing revenue diversification will be accelerated through strengthening of the bi-monthly Revenue Stakeholders meeting to ensure that Agencies meet their targets and incidence of shortfalls are escalated appropriately to him for necessary actions.
We will continue to ensure tighter control of recurrent expenditure, while still maintaining our periodic review of performance through the Quarterly Budget Appraisal. Project monitoring activities will be intensified to ensure that our people get good value for money spent.
Please permit me to provide more details on the Y2017 Budget:
Y2017 Proposed Revenue:
The Budget Size of N812.998bn will be funded from a total revenue estimate of N642.849billion with the balance of N170.150billion to be funded through a N100bn Bond Issuance Program and a combination of internal and external loans.
Total Internally Generated Revenue (TIGR): This is approximately N477.942bn (representing 74%) of the Total Revenue; the remaining N164.907bn (representing 26%) is expected from Federal Transfers including 13% Derivation.
Lagos Internal Revenue Service (LIRS): LIRS is expected to generate a tidy sum of N360bn, equivalent to 75% of the Total Internally Generated Revenue. We intended to improve on the current 2% revenue to GDP ratio by achieving 5% in 2017 and also bringing more people into the tax net as well as adoption of an automated single billing system.
Y2017 Proposed Expenditure: Capital Expenditure is proposed at N512.464bn and Recurrent Expenditure is N300.535bn, making up a total expenditure of N812.998billion. This provides an aggregate Capital to Recurrent ratio of 63:37, while allocations proposed for the Nine (9) Function
Groups of the Budget, in size and percentages are as follows:
The critical areas of our expenditure plan for Y2017 are:
Roads and Other Infrastructure:
The State Government proposed to spend the sum of N138.249bn on road infrastructure. This will include the completion of Abule-Egba overhead bridge, Ajah bridge; Continue the massive road rehabilitation in partnership with the Local Governments/Local Council Development Areas; Murtala Mohammed International Airport Road from Oshodi; Agric-Isawo-Owutu-Arepo Road in Ikorodu; Igbe-Igbogbo Phase II- Bola Tinubu Way in Ikorodu; Ijegun Imore Phase II Amuwo in Ojo axis; Oke-Oso- Araga-Poka in Epe, Epe-Poka-Majoda in Epe, and Pen Cinema flyovers, to open up the hinterlands, improve connectivity in the State and reduce travel time.
We shall also continue the expansion of BRT corridors, Signage, Lane-Marking and Community Traffic Initiatives, Reclamation of Lekki Foreshore, Advancement of “Light-up” Lagos project through provision, rehabilitation and maintenance of streetlight facilities, including solar power and inner roads.
Our administration shall enter into PPPs for the following projects;
- Oke Oso-Itoikin dualisation project.
- Okokomaiko-Seme Road project
- Ikorodu-Agbowa-Itoikin-Ijebu Ode Road Project
Transportation: A sum of N51.376bn has been earmarked for the Blue Rail Line, advancement of 10-Lane Lagos-Badagry Expressway, construction of jetties and terminals (especially at Epe and Marina with shoreline protection) and procurement of ferries to improve water transportation and encourage tourism. The Government is also committed to the expansion of BRT Lanes in Lagos and we shall pay due attention to Oshodi – Abule Egba BRT Corridor.
In the course of the 2017 Financial Year, we shall carry out fundamental reforms on all our modes of transportation – Roads, Water and the Walkways. In this wise, a Public Transport Infrastructure Bond will be issued in the course of the year.
Agriculture and Food Security:
We have proposed a sum of N4.795bn for accelerated food expansion program focused on rice production, animal husbandry and Root Crops as well as collaborate with other States in the Federation in the area of Food production.
Tourism: The sum of N20.247bn has been earmarked for the Development of Heritage Centre for Leadership (Lugard House), Centre for Yoruba Culture & History (Lagos House), J.K Randle Centre, Transformation of the Onikan Museum, Establishment of Museum for Art and Culture in Ikeja, Development of tourism hubs in Lagos-West and Lagos-East, Construction of 5 Cultural Theatres in Alimosho, Badagry, Epe, Ikorodu and Ikeja.
Environment: A sum of N38.129bn, out of the total provision of N56.310bn, is proposed for Continuous Improvement/ Maintenance of Drainage Channels (De-flooding Programmes), Procurement of Specialised Equipment for Flood Abatement purposes. Adoption of PPP arrangement for solid waste collection and management, construction/upgrading of Septic treatment plant at Ebute Elefun, Alausa, Abesan, Oke-Afa, and Iponri. Landscaping & Beautification of various sites (e.g. Gbagada-Oshodi Expressway to National Airport).
Water: N18.181bn has been proposed for Advancement of Adiyan waterworks (phase II) and Rehabilitation of mini waterworks all over the State. Improvement of water pipeline and reticulation.
Housing: The total allocation to the Housing and Community Amenities is N50.290bn. This investment will allow us to focus on affordable housing units through Rent-to-own schemes (Badagry, Lagoon View, Topo-Idale and Imota), the total sum of N15.291bn, out of the allocation, is committed to completion of on-going housing estates 
(Sangotedo, Odo Nasa Agowa, Ikorodu Ibeshe).
A sum of N8.249bn has also been proposed for Improvement on electronic Certificate of Occupancy (e-C of O) / Title Re-certification project, Issuance of e-planning approvals, and payment of Compensation on acquired Land.
Health:
The sum of N57,290bn is proposed for Continuous upgrading/renovation of health facilities and completion of on-going healthcare infrastructure, including MCCs, Upgrading / renovation of primary healthcare centres, Completion/equipping of Drug Quality Control Laboratory (DQCL), Prevention of blindness/special health projects, Construction of Specialist Hospitals, Construction of Medical Park, and Implementation of Medical Health Insurance Scheme and e-Health programme. We shall continue to pay due attention to the remuneration of our doctors, nurses and other medical staff in our health sector.
Sports Development:
A total of N9.457bn has been earmarked for the Development of four mini stadia, Upgrading of Teslim Balogun Stadium hostel, Construction of 50 Community Youth Recreation Centres across the state and provision of sporting facilities in schools and Local Governments across our State.
Education:
To accord education its priority, a total sum of N92.400bn (including Personnel Costs) has been set aside for Continued Rehabilitation/Upgrading of public school buildings/facilities; Continued provision of furniture for secondary schools, construction of new schools, Schools improvement plan for secondary schools, Provision of equipment for science laboratories, Continued provision of free textbooks and books for public school libraries, Development of e-Libraries, Mandatory capacity building programmes for teachers in public schools, Renovation of divisional libraries at Epe and Badagry, Enhance quality control of public and private schools and Continuation of the kick illiteracy out of Lagos programme.
In 2017, we shall focus more on standardization of our vocational education curriculum with a view to implementing a model that will enhance the capacity of our teeming youth to create employment.
Commerce and Industry:
The sum of N6.177bn has been proposed under Commerce for the on going Development of Lekki Free Zone, Industrial Park development, development of Enterprise zones, Badagry Deep Sea Port, Eko Atlantic project and other areas
Wealth and Employment Creation:
The sum of N6.250bn has been earmarked in this budget to sustain the implementation of Employment Trust Scheme.
Women Affairs:
We have proposed a total sum of N2.193bn for various initiatives for our women. The provision includes upkeep and Maintenance of Skill Acquisition Centres, Special poverty alleviation intervention programme for women, Construction/maintenance of Skill Acquisition Centres and other poverty alleviation related Projects at Isheri, Ibeshe, Eredo, etc., Construction of Institutes for caregivers in Agidingbi and Lekki and Construction of multipurpose centre / zonal centres for women across the State.
Youth and Social Development: N2.698bn has been proposed for the construction of elderly care centres in Ikorodu, Epe, Badagry, Alimosho and Lagos Island. In Y2017. We shall ensure renovation, refurbishment, equipping/furnishing and maintenance of youth hostel and centres at Oworonshoki, Omituntun, Ojokoro, Gbagada, Badagry, Epe, and Sam Shonibare.
In order to promote inclusion, we have created N500 million Special Grant (Disability Fund) for people living with disabilities.
Governance:
The sum of N11.098bn has been proposed for spending in this area. In addition, the sum of N1.250bn will be spent on various Capacity Building Programmes through the Ministry of Establishments, Training and Pensions to expose Public Servants to both local and international trainings in order to equip them for their role in actualizing the Lagos State development Plan 2012-2025.
Pensions:
The sum of N3.800bn has been set aside for the 7.5% Government share to Pension Contribution and N7.150bn for Pension Redemption Bond Fund-Shortfall.
Science and Technology:
The sum of N11.006bn has been proposed for Strategic Information Management, Building & Upgrade of IT Infrastructure Statewide, e-GIS Land Automation, Single Billing System and Ease of Payment for Taxes, Levies and Other Revenue items. This will include Smart City project targeted at deploying technology to enhance security in the State and will also enhance our revenue generating efforts.
Security, Law and Order:
We have proposed the sum of N31.246bn to address security challenges in the state, as well as the maintenance of Law and Order, and to support Security services in the area of vehicles, security gadgets and logistics. Other key areas to be addressed include Procurement of recording equipment for verbatim reporter/legal service & training centre; Establishment of Crime Data Register/Criminal Case Tracking systems/CCTN/ Construction/Completion of Police Area Command @ Ibeshe phase1-3, Elemoro phase1-3 & Idimu phase 2-3; Construction of DNA Forensic Centre @ E-Learning Centre, CMS, Lagos; Construction of Store/Warehouse at the three Senatorial districts of the State(Lagos West, East & Central) for election materials; Purchase of Specialized Fire Fighting Equipment; Maintenance of LASEMA resettlement centres at Agbowa & Igando camps; Maintenance & upkeep of Magistrate Court at Ajah Badore, Igbosere and Ikeja, and Re-branding of Neighbourhood Watch to Neighbourhood Safety Agency.
We shall continue to enhance the welfare of our security services in the areas of providing allowances, fuelling of patrol vehicles and adequate life insurance covers to motivate them in 2017.
Conclusion
In conclusion, gentlemen of the Press, as mentioned by His Excellency, the Governor, in his address to the House of Assembly, the Y2017 budget is our “Golden Jubilee Budget”and this administration will leave no stone unturned in ensuring its full implementation once it is passed into law.
Thank you for your attention.