A useful bit of conventional wisdom dictates that a government’s true priorities are revealed in its budgets, not its rhetoric. Budget mirrors the capacity of a government to identify the most pressing needs of the led majority and deploys available resources to meeting such. That’s why; ability to come up with people-oriented and implementable budget is one of the key elements necessary for success in political administration.
A budget is ‘an official statement from a government about how much it plans to spend during a particular period and how it will generate and pay for the expenses. Usually split into the recurrent and capital expenditures, the former is meant to take care of running the machinery of government, sundry logistics and pay the emoluments (salaries, allowances, terminal benefits such as pension and gratuities) of civil servants who act as catalysts of government’s policies and projects. The latter is to build or repair worn-out infrastructures (access roads, rails, water ways, provision of pipe-borne water, school buildings, hospitals, transport facilities).
With the growing pressures for enhanced service delivery in Nigeria and the challenges of budgetary crises and fiscal shocks, the need for improved budget processes and innovative financial management techniques is especially critical more than ever before.
The increasing significance of budgets in economy has obliged utilizing new techniques in managing it. It also calls for transparency and clarity of vision on the part of political leadership. Budget is a document that exposes hypocrisy of leaders found of promising heaven on earth without the capacity to deliver. In a sense, it is a form of communication between an administration and citizens that either excites the people if the content suggests priority needs of the people will be taken care of or depresses the masses if it doesn’t raise hope.
In the peculiar instance of Lagos State, prioritization of developmental needs and earmarking resources commensurate with the importance of each sector has been the compelling factors in budgetary estimates in the last three annual budget cycles under the administration of Governor Akinwunmi Ambode.
For instance, the first budget under the administration christened: ‘The People’s Budget’, was the impulsion that drive the massive investment, especially in the critical areas of security, physical and social infrastructural development, transport/traffic management, as well as enhanced job creation in 2016. The N662.588b people’s Budget of 2016 was followed by an audacious N813 billion budget tagged: “The Golden Jubilee Budget”, as the year 2017 coincided with the State’s 50th anniversary.
While presenting the 2017 budget, Mr. Ambode revealed that his administration was committed to infrastructural renewal and the enhancement of the state as one of the foremost tourism and investment destinations in Africa.
As distinct from some governments that don’t place high premium on the sanctity of promise, the Lagos 2017 Budget was faithfully executed with its positive impact being felt across the State. One can mention how the implementation of the Budget has been used to open up the hinterland as a result of the massive investment in rural road construction, rehabilitation and maintenance. That Lagos has commenced reconstruction of the 10-lane Oshodi-International Airport Road and Pen Cinema Bridge is no longer news. The assurance that the project would be completed in record time is also evident from the Ajah and Abule Egba golden jubilee bridges.
In fact, going by varied social development programmes achieved with the Golden Jubilee Budget, the Lagos State’s 2018 Budget christened: “Budget of Progress and Development” should excite Lagosians every bit just as clarity of purpose with which Ambode administration is delivering on promises. To reinforce his commitment to improving the welfare of the people, the governor has declared while presenting the budget estimate at the floor of the State’s House of Assembly that the N1.046 trillion estimates would be used to consolidate on the achievements recorded in infrastructure, education, transportation/traffic management, security and health sectors as well as capacity building for all public servants including teachers and health workers.
Sectoral breakdown of the estimate shows that General Public Service got N171,623 bn, representing 16.41 percent; Public Order and Safety, N46,612bn, representing 4.46; Economic Affairs, N473, 866bn, 45.30 percent; Environmental Protection, N54,582bn, representing 5.22 percent while Housing and Community Amenities got N59,904bn, representing 5.73 percent.
Health got N92, 676billion, representing 8.86 percent; Recreation, Culture and Religion got N12, 511 billion, representing 1.20 percent; Education got N126,302 billion representing 12.07 percent, while Social Protection got N8,042 billion, representing 0.77 percent.
The next logical question is on how to raise the money to fund both the capital and recurrent expenditures. The answer is simple. Long before the 2018 budget was conceived, series of Financial Management Reforms have preceded it with major emphasis on revenue generation in view of the dwindling revenues accruing to Lagos from the Federation Account. Equally important is that a number of macroeconomic risks have been taken into the budget, so we are actually looking at an optimistic scenario as well as a conservative and realistic situation.
One other vital thing is that the governor was definitive about what he intends to do in each sector. Few of that can be mentioned here. On infrastructural renewal, Mr. Ambode was specific about his government’s commitment to sustain the tempo of continuous construction, rehabilitation, upgrading and maintenance of network of roads across the State, including those within the boundary areas of Lagos and Ogun States.
Similarly, 181 Local Government Roads would be rehabilitated as contractors are to be mobilized immediately. Also, there would be continuous gridlock resolution, junction improvement, construction of more laybys and advancement of signalization that will improve traffic congestion especially along the Lekki-Epe corridor.
In the area of job creation, government is poised to construct an ICT Focus Incubator Centre in Yaba, commence the development of Imota and Igbonla Light Industrial Park as well as the provision of additional small scale industrial estate at Shala, while the State Employment Trust Fund will disburse more funds to Lagosians to support business and stimulate local economy.
Of noteworthy is the assurance that the state government will vigorously pursue its planned direct intervention in the power value chain towards generating 3,000 MW Embedded Power Programme within a three-year plan to achieving 24/7 power supply for the State.
Within the 2018 fiscal year, the government would also rekindle its efforts in the area of Tourism, Sports, Arts and Culture as well as embark on some major projects that would ensure that the State emerges as the hub for tourism, sports and entertainment.
From all indications, with the 2018 Budget the Lagos state government is determined to sustain the trail-blazing tempo that has largely become its trade mark.
It is, however, important to emphasize that the successful implementation of the 2018 budget depends on the commitment of government as well as the diligence of the people to fulfil all their civic obligations to the state. It is only when this is done; that the much expected progress and development can be truly realized.
Rasak Musbau
