Lagos State Governor, Babajide Sanwo-Olu on Friday presented a budget of N1.168 trillion to the Lagos State House of Assembly for approval for the 2020 fiscal year.
The proposed budget is to be funded by a projected Total Revenue of N1.071 trillion and a deficit amounting to N97.53 billion.
The budget size is higher than the 2019 budget by 34%. Capital Expenditure amounts to N723.75 billion while the Recurrent Expenditure is N444.81 billion, giving a 62:38 capital to recurrent ratio.
According to Sanwo-Olu, “This, in our view, is strong for development. 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 N167.81 billion 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 N97.53 billion will be financed by both internal and external loans. Since revenue generation is the spine of any budget, this budget supports investment in our revenue generating agencies. This budget seeks to aggressively invest in and develop our education, health and other physical infrastructure sectors. Although our capital spent on works and infrastructure was just N31 billion as at September 2019, as against the 2019 budget
proposal of N78 billion, it is our intention to spend N115 billion in 2020,” he said.
The governor said Education would see a significantly increased capital budgetary allocation of N48 billion, an increase of 60% over the 2019 provision of N30 billion, adding that “we must improve the standard and relevance of our education outcomes to our industries. We will work together with our Local governments to strengthen early child education and teachers training/administration, leveraging technology.