LAGOS AND THE 2024 BUDGET OF RENEWAL

The common accounting tool governments, companies, organisations and several other institutions across the world use for planning and controlling what they must do to satisfy the people,  customers and succeed in  governance, business and other areas of human endeavours is budgeting.

Budgets provide a measure of the financial results a company expects from its planned activities. By planning for the future, government officials, chief executives, managers, administrators and others in leadership positions learn to anticipate potential problems and how to avoid them. Instead of subsequently facing problems, they can focus their energies on exploiting opportunities.

In the last four and half years, the Lagos State Government has changed the paradigm not only in budgeting, but in its implementation in the country. The State has not only effectively monitored budget implementation, it has consistently delivered a budget performance in excess of 70%. It has been the policy of the government to embark on periodic budget review.

Repeated monitoring, critical examination and diligent application of the process have impacted positively on budget performance in the state. The idea of periodic budget assessment speaks volume of the pro-activeness of the government as it affords it a scientific basis of measuring   its performance in a consistent manner while putting pressure on government departments and agencies to meet budgetary targets.

While presenting the 2024 budget estimate, christened ‘The Budget of Renewal’, to the State House of Assembly, Governor Babajide Sanwo-Olu revealed that as at the third quarter of 2023, the period ending 30th September 2023, his government had implemented N1.032 trillion of the 2023 Budget, representing 78% of the prorated estimate of N1.326 trillion.

According to the governor, actual capital expenditure stood at N613.52 Billion, 80 percent of the prorated estimate of N764.93 billion, while actual recurrent expenditure was at N419.06 billion, representing 75 percent of the prorated estimate of N561.073 billion.

He was, however, convinced that the 2023 budget will have a budget performance that is close to 90% by the end of the year.

This amply reflects the commendable form of progress that is being made in terms of budget monitoring and implementation at the ‘Centre of Excellence’. More importantly, it is inspiring that the result of a recent impact assessment done by the government shows that critical sectors such as Health, Education, the Environment, and Security are experiencing marked improvements.

In terms of literacy level, for example, the level in the state is above the national average. In terms of life expectancy, Lagos State is above the national average. The implication of this is enhanced security, improved healthcare and invariably better quality of life. The number of patients to doctors is also improving as reflected in life expectancy.  Equally, the number of still births and deaths is also gradually reducing.

It is, thus, quite cheering that the State’s 2024 Budget proposal is coming at a time when the focus of the government is on sustaining and surpassing the gains of the past four and half years through the completion of several ongoing projects such as the Phase 11 of the Lagos Blue Light Rail, Massey Street Children’s Hospital, General Hospital, Ojo and Opebi-Ojota Link Bridge, among others.

The 2024 Budget, as proposed, has a total budget size of N2.246,234 trillion, comprising a total revenue of N1.847,951 trillion and deficit financing of N398.283 billion.

From all indications, with the availability of the required financial resources, the government will accomplish its objective of sustaining a rising Lagos.  Over the years, it has demonstrated enough capacity to implement projects.  Ironically, however, the successes of the state have created some social-economic challenges as reflected in the number of people coming into the state to benefit from what it has to offer. It is quite similar to the case of Nigerians travelling abroad in quest for the proverbial greener pasture.

In order to ensure total success of the State’s 2024 budget, the people need to be fully involved in its implementation. For instance, they need to speak up whenever they notice any anomaly in the implementation of projects in their localities. The projects in their localities are theirs and are principally meant for them so they should monitor them to ensure that money being spent is well spent.

Similarly, existing structures for programme monitoring should be supported with proper evaluation systems especially where existing ones are weak. It is important, equally, that evaluation provides evidence – based information that is credible, reliable and useful, enabling the timely incorporation of findings, recommendation and lessons learnt into decision making.

Perhaps, more notably, all MDAs in the State need to be more creative in their revenue generation drive by focusing on untapped areas of revenue.

Tayo Ogunbiyi is Director (Features), Ministry of Information and Strategy, Alausa, Ikeja