Lagos Governor, Babajide Sanwo-Olu has presented a total budget estimate of N1.168trillion for 2020 to the House of Assembly.
The budget estimates consist of N723.6billion as capital expenditure and N441.8billion for recurrent expenditure, which is a ratio of 62-38 per cent.
The budget size is higher by 34 percent compared to 2018, which performance, as at September, stood at at 69%
Tagged ‘Budget of awakening,’ the governor said there were needs for sacrifices from all to re-invent Lagos and take the state to a much higher level.
The governor said the budget is consistent with the THEMES agenda of his administration and gives priority to the completion of ongoing projects.
The Proposed budget will be funded by a projected total revenue of N1.071trillion and a deficit amounting to N97.53b
Sanwo-Olu said the budget is strong for development and seeks to aggressively invest in and develop education, health and other physical infrastructure sectors.
“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 N167.81b 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.”
According to Sanwo-Olu, the objective of the budget include to attract private sector investments to the
economy by creating an enabling environment; aggressively develop, upgrade and maintain Infrastructure; invest in human capital development, i.e. education and healthcare.
Speaker Mudashiru Obada assured the governor “and all our people that my colleagues and I shall promptly and diligently commence work on the Y2020 budget just presented to this Honourable House.
“We will ensure that Lagos State occupies the enviable position that has always been reserved for us. We will work diligently for the early passage of the budget so that developmental work can start in earnest in the state. In other words, our intention is to make this budget a special New Year gift to the people of this great state.”
Obasa commended the governor the governor for “for being astute, courageous, insightful, forthright, thorough, and determined. You have really displayed, during your few months in office, that you are capable to maintain a track record of resourceful consistency in the state.”