Distinguished, I once again welcome you all to the 2011 budget presentation. I am highly humbled and greatly honoured to stand before eminent personalities in an important occasion as this. The overwhelming turn-out today is a clear and evident testimony to the overriding importance of budgeting in corporate governance. I unreservedly commend the commitment and seriousness of all development-conscious minds here-in present. My gratitude will not also elude all active stakeholders who have assiduously supported this administration in making a huge success of the 2010 budget.
Empirical evidence within our beloved community resplendently points to the fact that this administration has tirelessly worked hard to achieve the objectives of the 2010 budget of consolidation. I dare, by the reliability of the statistics at my disposal, to interpret this success as attaining 76% implementation level of the previous budget.
Given the estimated amount in the 2010 budget, we were able, through a fine blend of fiscal intelligence, financial discipline, and optimum priority evaluation, to embark on massive capital projects, with pockets of work still in progress.
The year 2010 was synonymous with several projects and infrastructural highlights; chief of which include the now completed circular road, phase1, 2, and 3, at Mile 2 estate; rehabilitation of 11 road, 4th avenue, and recreational centres at various parks.
In addition, the local government secretariat has been given a facelift, with the newly constructed office annex, and exterior inter-locking floor decoration spanning the length and breadth of the secretariat.
Our administration, in the 2010 fiscal year under review, equipped the vocational centre. We dug boreholes with treatment plants in each of the wards within the local government area.
May I assure you that plans are in top gear to address the remaining few deplorable roads and dilapidated infrastructures before the rains is fully here.
Under education, a sector of utmost priority to this administration, a total of 9 schools have been renovated while 1 school was newly constructed at Igbologun. We have built modern toilet facilities and dug boreholes with treatment plants in 15 schools. Also, we provided 15 6kva generators to power the boreholes in each of the 15 schools. Still under education project, we have refurbished the library at 5th avenue. As a recurring practice, this administration for the year 2010 again, gave out free 600 JAMB and 600 G.C.E. forms, 220,000 exercise books, 33,000 mathematical sets 606 uniforms, etc.
Under health, another very important sector to this administration, giant strides have been taken to ensure effective delivery of quality health care services. We have provided a space bus that serves utility purpose. Elaborate renovations have been carried out in 4 primary health centres ------ two in upland and another two in our coastal community. The services of 15 doctors have been engaged in addition to employing a health consultant while free drugs have been provided for 500 people on monthly basis. We have entered partnership with 2 laboratory outfits and a pharmacy. The NPI unit at Mile 2 has been refurbished, with chest-size freezers provided. The facilities at various health centres have been upgraded for optimum service delivery and patients comfort. We are also working with 14 voluntary/ community extension workers both in the upland and coastal areas, just as plan is at the advanced stage to institute a world health committee.
This administration has also made significant impact in other sectors of the economy ------ agriculture, sports development, capacity development, environment, youth empowerment and job creation, donations to the less privileged and vulnerable class, supporting civil society organizations, etc. Fellow compatriots, I make bold to state that this administration prides itself on the provision of employment for a whooping 728 non-pensionable staff ----- the largest in the history of this local government .
At this juncture, may I unequivocally state, that this administration highly appreciates the unique services of the Public Works Bureau, and our consultant on public project in ensuring that the standards laid by the state government on project execution are fully complied with.
May I also state that the essence of this summary is to keep you good people of Amuwo abreast of this administration's various developmental activities with a clearer picture of how the 2010 budget was judiciously implemented. I will like to aptly add here, that the implementation plan of the 2010 budget, just like this administration's previous budget, and our giant developmental strides so far, only underlies the policy thrust of this administration: the practice of emancipative governance responsive to the yearnings and aspiration of its people, in the bid to advance the human course. A style of governance with zero tolerance for underdevelopment.
In line with this philosophy therefore, and in consonance with the infrastructural demands of an advancing and emerging mini-mega society, the 2011 budget tagged budget of sustainability will take a quantum leap from the 2010 budget, and will witness vestiges of benign changes across its components as a reflection of our re-evaluated priorities.
It is instructive to note that the various local governments in Nigeria find themselves in a predicament today, as centres of development without the requisite empowerment for driving economic growth. As expectations of local government continue to rise with 12 years of uninterrupted democratic experiment, it becomes worthwhile to reappraise the opportunities for achieving sustainable development of this all-important tier of government.
The 2011 budget boast of an estimated sum of #7.121billion. This is a 20.5% increase from 2010 budget estimated at #5.909billion. This increment however, is an indication of this administration's readiness to positively affect lives and establish all forms of development , and to run policies and programmes with human face. A breakdown of this year's estimated budget is presented below:
Statutory Allocation from Federal Government #3,200,000,000
Statutory Allocation from State Government #2,487,400,000
Internally Generated Revenue (IGR) # 118,023,985.60
Value Added Tax (VAT) #1,329,150,000
Total Revenue #7, 121,200,000.60
Agriculture # 30,000,000
Works, Housing & Infrastructure #4,000,000,000
Commerce/ Finance/ Co-operative # 50,000,000
Education # 282,000,000
Health # 150,000,000
Planning & Budget # 30,000,000
RECURRENT EXPENDITURE #2,578,700,000
Distinguished. The summary of the 2011 approved budget clearly reflects an important point of note that has been sustained through the life time of this administration so far, by its tenacious hold on concrete budgetary policies, reforms and control. Looking at the budget, a total of #4.542billion is earmarked for capital expenditure, amounting to 64% of the total budget while #2.578billion is meant for recurrent expenditure, making it 36% of the total budget.
You will agree with me that this is an obvious display of superior fiscal responsibility and management by this administration, and a sharp contrast to the fiscal recklessness and insensitivity of the federal government budget, that grossly undermines meaningful socio-economic development. No country develops when 70% of her budget is allocated to recurrent expenditure and a paltry 30% to her capital expenditure. Such distorted and retrogressive fiscal ineptitude only festers the nest of corruption ------- the cancerous and bubonic plague that have destroyed the fabric of this nation.
Need I say at this point that the 2011 budget is functional to two important factors:
(1) The resolution and consensus from the last local government economic summit held last year
(2) The attempt by this administration to graciously replicate the giant development strides of the Lagos state government.
Speaking on the subject, there is an 8.7% increase in proposed capital expenditure from #4.177billion in 2010 to #4.542billion in 2011. For the year 2011, 56% of the total capital expenditure is allocated to works, housing and infrastructure. This is in recognition of the immense work to be done in the areas of strengthening our infrastructures. Recurrent expenditure will also experience a significant increase of 49% from #1.732billion in 2010 to #2.578billion in 2011.
Despite a significant decrease of 22% in the federal government allocation from #4.1billion in 2010 to #3.2billion in 2011,the state government allocation will experience an unusual increase of 206% from #.811billion in 2010 to #2.487billion in 2011. This of course is consistent with the state government's effort to adequately support our local government in bringing the dividends of democracy to our people.
Distinguished ladies and gentle men, an important feature of our budgetary policy for 2011 is to constructively engage the organized private sector. Through a public/private partnership initiative, the organized private sector, in a renewed bid to assume its corporate social responsibility, will be active stakeholders in the execution of major projects.
Let me remind all conscious mind here-in present that with an outstanding profile of non-indebtedness to any institution, even as we are just recovering from a grievous recession, Amuwo-Odofin L.G under this administration deserves closer attention. This is especially, the case when the local government has achieved fiscal stability while recording extensive infrastructural development. But may I quickly say that infrastructural development cannot be achieved without a viable tax system. hence we intend to strengthen and restructure our tax policy; and we implore all stake holders in AMUWO-Odofin project to be supportive by paying their taxes, rents, rates, and charges.
We will restructure our budget monitoring team to effectively monitor projects. But consistent with the policy of this government since inception to run an open door policy, you are hereby, reminded that you all constitute the chief monitoring structure to ensure an effective implementation of this budget.
Permit me at this juncture to use this medium to call on the National Assembly to respect the will of the Lagos people by duly listing the 37 local council development areas (LCDA's) as full fledge local governments, and also equitably allocating resources due to them like other local governments, in accordance to the law of equity, in order to instigate rapid development in these areas. As approved, we are setting aside the sum of #1.7billion for Oriade local development area. This amount is shared in the proportion of 67% and 33% for capital and recurrent expenditure, respectively.
Your excellencies, distinguished ladies and gentle men. We appreciate the presence of everybody here. This administration is indeed grateful to you for your patience and understanding with us through the tortuous climb to development. We cannot stop to hope and pray for your continuous support. You have our firm assurance that we will not renege from fulfilling our own part of the social contract bargain.
Thank you for your mandate.
Long live Oriade Local Council Development Area
Long live Amuwo-Odofin Local Government
Long live Lagos State
Long live Federal Republic of Nigeria.
Eko oni baje oooo!
Comrade Ayodele Adewale
Mayor, Amuwo-Odofin L.G.A.