Nigeria's commercial hub, Lagos plans to borrow 250 billion naira to finance part of this year's budget, the governor of the state Babajide SanwoOlu said in a letter to the state's parliament on Tuesday.
In the letter read on the floor of the State House of Assembly, the governor said the 2019 budget could no longer be funded hence the need for its re-ordering and sourcing for more funds.
According to the letter, the state plans to raise 100 billion naira in a fixed-rate bond from the capital market and an internal loan of 150 billion naira.
The governor explained that the budgetary provisions of the recurrent and capital budget of ministries, departments and agencies were not likely to be utilized before the end of the year, saying that 34.05 billion naira component of the budget could be re-ordered.
The governor said that his administration was constrained by the lack of revenue for the remaining months of the year and that it would not be in a position to propose a supplementary budget, which informed the recourse to re-ordering the 2019 budget.
He said the budget as at 31st August 2019 had a 71 percent overall performance, which was below the set target of 100 percent.
“Further analysis shows that the recurrent expenditure stood at 80 percent while capital expenditure was at 64 percent performance, portending a 49:51 capital/recurrent ratio against the target of 55:45.
“It should be noted that some of the major MDAs that are supposed to implement the capital expenditure are performing below expectation, while others have almost exhausted their budgetary provisions,” Sanwo-Olu explained in the letter.
According to the governor, all other arms of government should cooperate with him by ensuring that they improve on spending in priority areas, adding that the administration was desirous of keeping its electoral promises to the citizens and had resolved to take advantage of clement weather condition in the latter part of the year to complete various projects.
The projects, he said would benefit from the re-ordering were: completion of Lagos-Badagry express road; Agege Pen cinema overhead bridge; Agric-Isawo road; Bola Ahmed Tinubu-Igbogbo road; rehabilitation of schools; initiate and complete smart city project and zero tolerance for portholes, among others.
The governor said that his administration was constrained by the lack of revenue for the remaining months of the year and that it would not be in a position to propose a supplementary budget, which informed the recourse to re-ordering the 2019 budget.
He said the budget as at 31st August 2019 had a 71 percent overall performance, which was below the set target of 100 percent.
“Further analysis shows that the recurrent expenditure stood at 80 percent while capital expenditure was at 64 percent performance, portending a 49:51 capital/recurrent ratio against the target of 55:45.
“It should be noted that some of the major MDAs that are supposed to implement the capital expenditure are performing below expectation, while others have almost exhausted their budgetary provisions,” Sanwo-Olu explained in the letter.
According to the governor, all other arms of government should cooperate with him by ensuring that they improve on spending in priority areas, adding that the administration was desirous of keeping its electoral promises to the citizens and had resolved to take advantage of clement weather condition in the latter part of the year to complete various projects.
The projects, he said would benefit from the re-ordering were: completion of Lagos-Badagry express road; Agege Pen cinema overhead bridge; Agric-Isawo road; Bola Ahmed Tinubu-Igbogbo road; rehabilitation of schools; initiate and complete smart city project and zero tolerance for portholes, among others.
0 comments:
Post a Comment