ONE of the key elements necessary for achieving success in any endeavour is the viability of the vision and the implementation thereof by its operators. This becomes even more compelling when a leader; who holds the destiny of men and materials within his political ambit exhibits the capacity to identify the most pressing needs of the led majority and deploys available resources to meeting such.

In doing so the leader should also be able to prioritize those needs and earmark resources commensurate with the importance of each sector. The aim of course, is to assuage the pains of the people. They know the exact spots where the shoe pinches them but more often than not their views are not sought before plans meant for them are highlighted, especially in policy pronouncements and budgetary estimates. The grand assumption is that their elected or selected representatives know their priority needs and are ever willing to find solutions to them. But in reality, this rarely takes place.

Yet, a budget is ‘an official statement from a government about how much it plans to spend during a particular period and how it will 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). These are meant to provide the enabling environment for local and international investments to thrive.

Be that as it may, the current challenges before the governments, at both the federal and state levels are enormous in drawing up and more importantly, implementing budgets. These include, the free fall of both crude oil prices and the value of the local tender, the naira, persisting insecurity up north and the high rate of youth unemployment. Others are the grossly deficient tax payment system by individuals and corporate organisations and the slow pace of revenue in-flow from the no-oil sector.

In the peculiar instance of Lagos State, as the commercial nerve-centre of the country, it is worth noting that Governor Akinwunmi Ambode has proposed a budget tagged: ‘The People’s Budget.’ This falls in tandem with his ambition to diffuse governance from vested interests in the political class in favour of the people at the grassroots. An unbiased appraisal of the budget sheds light on this assertion. For instance, on December 17 2015, the governor presented a budget of N662.588b for the 2016 fiscal year to the Lagos State House of Assembly for approval.

At the event, Ambode explained that the budget would promote massive investment, especially in the critical areas of security, physical and social infrastructural development, transport/traffic management, as well as enhanced job creation. The budget is N172.898 billion higher than the 2015 budget of N489.69b. This represents an increase of 26 per cent over the budgets of 2014 and that of 2015 respectively, which stood at N489.6 billion. One interesting feature is that the Recurrent Expenditure is put at N278, 909b, while the Capital Expenditure is N383, 678 billion. This is in the ratio of Capital to Recurrent 58:42 as against 51:49 in 2014 and 2015.

Similarly, the total Personnel Cost/Total Revenue is 23 per cent, while the total Personnel Cost/IGR is 31 per cent and Personnel Cost as percentage of Recurrent Expenditure, 46 per cent. A breakdown of the budget showed that General Public Service was allocated N120.5b; Public Order and Safety, N28.559b; Economic Affairs, N211.043b and Environment, N53.043b. Also listed are Housing and Community Amenities, N62.7b; Health, N64.67b; Recreation, Culture and Religion, N4.63b; Education, N113.379b and Social Protection, N4.025b.

To reinforce his commitment to improving the welfare of the people, in line with his promise during his campaigns, Ambode had this to say: “We plan to use the 2016 budget to strategically build new infrastructures, while we continue to maintain existing ones. Wealth and employment creation will receive a lot of attention as we commence the implementation of the Employment Trust Scheme, which will set aside N25b over a four-year period for job creation.

The increase in the budget is understandable. It would assist the government to concentrate on the persisting challenge of insecurity, finding lasting solutions to traffic gridlock. Also included are, physical and social infrastructural development. This is justified by the ever-increasing population, what with daily influx of people from the embattled Northeast. And others seeking fulfillment of entrepreneurial dreams in the commercial hub of the West African Sub-region.

The next logical question is on how to raise the money to fund both the capital and recurrent expenditures. The answer, according to Ambode is: “we have resolved to improve on our revenue to GDP ratio which is about 2 per cent presently by broadening the revenue base of the State and bring more citizens into the tax net through automation of tax assessment, collection and administration. In future, an improved revenue base will ensure reduction in our deficit financing,” he said.

In the light of that statement, the total revenue estimate for 2016 fiscal year is N542.873b, which shows that the balance of N119.714b will be funded through deficit financing. That would be 0.41 per cent of the state Gross Domestic Produce (GDP) based on 2016 budget alone. There is a cumulative debt to GDP ratio of about 3 per cent. The governor explained that, “the expansionary vision of the previous and current budgets, Medium Term Economic Framework (MTEF) and Lagos State Development Plan 2012-2025, required sustainable budget deficit financing and good debt management to aid implementation.”

According to Ambode, “We have maintained a conservative approach in estimating our Federal Allocation. This is principally due to falling oil prices that was about $38 per barrel at the time we finalized our budget. According Lagos a Special Status will benefit the State as we implore the Federal Government to look into this as soon as possible. As you are aware, the Federal Government still owes Lagos State over N50b expended on federal roads in Lagos state. We look forward to an early refund to enable us utilize the fund on other infrastructure that require attention.”

On security, the governor said the state is making sure that it is safe and secure for all citizens. To this end, government has resolved to adopt a multifaceted approach at tackling this challenge, pledging that government would continue to support the security agencies in 2016.

On infrastructural development, particularly roads, Ambode stated that one major assignment his administration had embarked upon is to regularly inspect the state of the roads. The aim is to critically assess their conditions and ensure that they are motorable. Said he; “The Ten-Lane Lagos-Badagry Expressway is on course. We have awarded the contracts for fly-overs at Abule-Egba and Ajah to resolve the perennial traffic gridlock along those corridors and they are expected to be complete in 16 months. We will also be working at Pen Cinema, Agege, to efficiently resolve incessant traffic bottleneck caused around that axis.
“In addition we will be expanding the BRT Corridor at Mile 12-Ojota, while we will commence construction of new roads across the length and breadth of our state. We will place the completion of ongoing road construction projects and pedestrian bridges on our priority list in Year 2016,” he said.

The novel adoption of: “A-Meal- a-Day Programme” is in fulfillment of the All Progressives Congress (APC) manifesto. It commences in Year 2016. This will be done in collaboration with the Federal Government who will provide 60 per cent of the funding, while the State Government will match it with 40 per cent. “This programme promises not only to improve the daily nutrition of our children, it will also create an economy of its own, with opportunities for job creation, income generation, poverty alleviation, and so on.

Similarly, the governor promised that intervention in education at the state level will continue in the areas of maintenance of public school buildings/facilities and provision of basic instructional materials/ free textbooks for schools. This would be complemented by the mandatory capacity building programmes for teachers in public schools. The government intends to launch an advocacy programme –“Kick Illiteracy out of Lagos,” starting from Year 2016.

Also noteworthy, was the speech delivered by the Speaker, Mudashiru Obasa after the budget presentation. He noted and rightly too, that Lagos has continued to be seen as a model of good governance and home to all Nigerians, having attained the enviable status of a mega city.
“In treating this budget, we will not forget that we are trustees for the people. A lot has indeed been done in the area of job creation and economic empowerment of Lagosians. But there is a dire need to create more opportunities for our people; more jobs will definitely lead to greater economic growth.”

He also made reference to the confirmation by the Civil Resource Development Documentation Centre (CIRDDOC), an independent, non-governmental organisation that recently declared Lagos State as the third most transparent state in Nigeria, in the area of budget performance and transparency.

With this valid document of serious intent to alleviate the pains of the people and with the harmonious relationship among the three tiers of government, its speedy passage and efficient implementation would give ample meaning to it as The People’s Budget.

Ajanaku is the Senior Special Assistant, Media and Strategy to Lagos State Governor