N485 billion for Lagos capital projects.

Lagos State Governor Babatunde Fashola yesterday presented a N485.292 billion budget proposal for 2012 to the House of Assembly. 
The proposed budget is 7.66 per cent higher than this year’s revised budget of N450.18 billion.
About N227.47 billion is earmarked for recurrent expenditure and N257.821 billion for capital expenditure. 
The presentation was attended by former Governor Lateef Jakande;  Action Congress of Nigeria (ACN) State Chairman Henry Ajomale; Senator Oluremi Tinubu; members of the Traditional Council, led by Oba Rilwanu Akiolu of Lagos; Senator Olorunimbe Mamora; members of the State Executive Council; and former members of the House of Assembly, among others.
Fashola said the deficit financing requirement proposed in the budget is N59.781 billion, which is 1.19 per cent of the state’s Gross Domestic Product (GDP).
The total revenue expected is N399.834 billion, which comprises Ordinary Revenue of N289.676 billion and Federal Transfers of N110.158 billion.          
The total overhead cost, estimated at N145.960 billion, includes: Overhead cost, N79.797 billion; Dedication Expenditure, N25.595 billion; Subvention, N28.668 billion; Staff Housing Fund, N0.050 billion; Debt Charge (External), N1.050 billion; Debt Charges (Internal), N6.958 billion; and Debt Charge (Bond), N3.842 billion.
Capital Receipts are put at N25.677 billion and made up of: Grants, N3.468 billion; Investment Income, N0.289 billion; and Other Capital Receipts, N21.920 billion.
The Capital Expenditure of N257.821 billion consists of: Core Capital, N222.868 billion; Capital Development (Dedicated), N21.920 billion; Grants, N3.468 billion; Counterpart Funding, N3.465 billion, Special Expenditure 6.000 billion; and Risk Retention Fund, N0.100 billion.
Sectoral Allocations are as follows: General Public Service, N108.526 billion (22.4 per cent); Public Order and Safety, N13.849 billion (2.9 per cent); Economic Affairs, N154.419 billion (31.8 percent); Environmental Protection, N44.227 billion (9.1 per cent); Housing and Community Amenities, N42.812 billion (8.8 per cent); Health, N39.754 billion (8.2 per cent); Recreation, Culture and Religion, N5.989 billion (1.2 per cent); Education, N72.346 billion (14.9 per cent) and Social Protection, N3.370 billion (0.7 per cent).
Fashola said: “This will be a most challenging budget to implement. It is the first full budget in this term of great expectation, when we must begin to fulfill new electoral promises and meet citizens’ expectations at a time of enormous economic and security challenges.
“For a start, let me assert very clearly that our purpose and commitment towards delivering the greatest good for the greatest number is not in doubt. We have a clear plan, informed by a progressive manifesto of the fastest growing political party, the ACN.
“We are concerned about the quality of life of working and middle class people, and those who are vulnerable. This has led to many strategic policies aimed at making life better and less challenging.
“These policies are administrative and legislative. Three of such that readily come to mind are the recent laws to create the Office of Disability and review the Criminal and Tenancy Laws.
“The law creating the Office of Disability gives legal backing to some of what we are doing already, to recognise that physically challenged people require special provisions to make them lead as normal as possible lives, in spite of their disabilities.”
He said this year’s budget has achieved significant goals, such as the inauguration of a 10 megawatt IPP on Lagos Island, which services the State House in Marina, General Hospital, Lagos, Island Maternity Lagos, the Lagos High Court and Igbosere Magistrate’s Court, among others.
The government is to increase rates it is charging on land use, starting from January.
Fashola said it was agreed that the rate charged for land use, should be reviewed up in 2009, but “at the peak of the global financial crises, the state government refrained from doing so”.
“So for nine years, we have kept the same rate of Land Use charge without review, even though all the variables of the economy like the inflation, interest, and exchange rates, have increased.
“I must now necessarily announce an increase of 0.05% in the rate of Land Use Charge effective from Jan 1, 2012,” he said.
The governor also approved the recommendation to reduce the rate of Governor’s Consent by two per cent, the gross costs for perfecting title from a total of 15 per cent to 13 per cent.