‘Lagos 2014 Budget Doing Well’ -Fashola

Lagos State Governor, Babatunde Fashola has declared that the 2014 budget of the state had achieved 106 percent performance in the second quarter of its implementation.Babatunde-Fashola budget analysis

Mr. Fashola said this after the budget review meeting held at the Lagos House on Tuesday.

“We just conducted the review of the second quarter budget performance and the result is that between April and June, the state budget performed at 106 percent. And what that gives one if added to the 86 percent performance in the first quarter, the result will be a cumulative half year performance of 86 percent.” He said.

The governor also added that the impact of that performance can be seen in some of the housing projects that were completed within the period and the roads that were completed within the period.

“Some of the roads were Yaya Abatan and others. That is the physical connection to the number that one is seeing.

“There is still work to do. There are still places waiting for the state government attention. There are many projects coming into completion. Many have been completed and many will be completed in the third quarter.

“In terms of revenue to the state, it has diminished over the last 14 months. What we use to have before now was N9 billion or N10 billion that is given to Lagos. But this has reduced to between N7 billion and N8 billion. Except for spikes in the last two months, the pattern over eight months before was a reduction in what we use to get.

“The reality therefore is that our wage bill which is average N6.5 billion monthly. And this means that one gets this reduced allocation, and pays salaries of civil servants, one is left with about N1.5 billion. After paying subvention, the entire fund is almost exhausted. So we have been living on out IGR.”

Fashola pointed out that some of the things that the state use to do with the Federal Government allocation is now being financed by the state with its IGR, saying there is a gap that has been crystallized by recent development.

“If people stop paying tax, the state will go cap in hand to collect N7 billion. And people are still asking for the construction and rehabilitation of roads in the state. No economy in the world has developed without payment of taxes; this is because this is what brings participation in democracy. If your money is in it, one commitment will be stronger.

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