Gov Sanwo-Olu Presents N1.168trn Budget Estimates To Lagos Assembly
A budget estimate of 1.168Trillion Naira to to be funded through a projected Total Revenue of 1.071 Trillion Naira as been present before the Lagos Lawmkakers by the State Governor, Mr. Babajide Sanwo-Olu.
The budget tagged “Budget of Awakening to a Greater Lagos” according to the Governor, intends to attract private sector investments to the State economy by creating an enabling environment; aggressively develop, upgrade and maintain Infrastructure; invest in human capital development, i.e. education and healthcare; facilitate sustainable social investment and enterprise; improve capacity to collect due revenues as efficiently as possible; improve civic participation in governance, and automate public services and engagement.
He further stated that the Y2020 budget would build impactful partnerships with the Federal Government, other States, development partners and civil society; and improve the quality of the environment and our public spaces generally.
While highlighting some unique components about the proposal Sanwo-Olu noted that in putting the budget together, several consultations were made across the three senatorial districts, in concurrence with memoranda and feedback from stakeholders’ meetings organized by the State House Of Assembly that were considered, and the support of a Performance Management System that would ensure an optimal implementation is acheived by December 2020, in comparison with previous years.
He also explain that the budget size is higher than the 2019 appropriation by 34% capital expenditure amounts to 723.75 Billion Naira and the Recurrent Expenditure is 444.81 Billion Naira giving a 62:38 capital to recurrent ratio.
These increment is in line with administration commitment to transparency and accountability in the management of public finances.
“We have placed an increased focus on wealth creation where we will take deliberate steps in courting a partnership between our people and various development institutions. In line with this, we have provided N11.8bn as counterpart funds in preparation for various social impact schemes. In addition, we have made provisions for N7.1bn this year, to provide for industrial hubs, parks, graduate internship programs and virtual markets for artisans. This is in support for Micro, Small and Medium enterprises which are the engines for both economic and employment growth.”
“It is equally proposed that a total of 167.81 Billion Naira of the Recurrent Expenditure shall be applied towards personnel costs and other staff-related expenses. This represents 22.02% of the proposed Total Revenue, which is within the acceptable wage policy of 25% of Total Revenue, and includes a provision for the new minimum wage. The budget deficit of 97.53 Billion Naira will be financed by both internal and external loans.”
“This budget seeks to aggressively invest in and develop our education, health and other physical infrastructure sectors. Although our capital spend on works and similarly, in healthcare, we have provided for a capital expenditure of 33 Billion Naira, compared to the 2019 budget proposal of 21 Billion Naira.”
“We will ensure that our primary health care institutions remain active and attractive to the primary health care needs of our people. Lagos belongs to us all; we will continue therefore to drive partnerships with the private sector in promoting health services within our institutions.”
“Given the perennial challenges of flooding in the metropolis, we have tripled the capital budget provision to tackle this from 3 Billion Naira in 2019 to 9 Billion Naira in 2020. Infrastructure was just 31 Billion Naira as at September 2019, as against the 2019 budget proposal of 78 Billion Naira, it is our intention to spend 115 Billion Naira in 2020.”
“Education will see a significantly increased cap3ital budgetary allocation of 48 Billion Naira, an increase of 60% over the 2019 provision of 30 Billion Naira.