Lagos: Ambode may inherit N316b debt

The incoming administration of Akinwunmi Ambode in Lagos state may hit the ground running with a debt of about N316 billion hanging on its neck.

This is because, according to Commissioner for Economic Planning and Budget, Mr. Ben Akabueze, the total revenue generated by the Fashola administration in the last eight years was N2.433 trillion, while the aggregate budgetary expenditure for the period is N2.749 trillion, leaving a deficit of N316bn.

Akabueze, who disclosed this on Thursday in Ikeja at a briefing, explained that the total revenue generated represents 89 percent of the total expenditure by the government.

He explained “What these translate to is that only 11 percent of the state’s expenditure has been funded from debt. Of course not all the revenue was generated through IGR. Only 59 percent (N1.4 trillion) of the budgetary expenditure was funded through IGR.”

It also spent over N2.7 trillion in providing infrastructure and other economic needs for residents during the period under review.

The commissioner noted that the average budget performance over the period stood at 79 percent, adding, “the claim that the state is operating on loan is not true.”

According to him, “Average sectoral allocation of the budget from 2008 and 2015 are: General Service; 23.70 percent, Public Order and safety; 3.12 percent, Economic Affairs; 31.58 percent, Environmental protection; 8.56 percent, Housing and community amenities; 9.17 percent, Health; 7.66 percent, Recreation, culture and Religion; 1.5 percent, Education; 14.09 percent and Social protection; 0.60 percent.”

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