Governor Babajide Sanwo-Olu has on Friday presented his proposed 2020 budget sized 1.168 trillion naira to the Lagos State House of Assembly.
The Governor while addressing the Lagos lawmakers said the budget which he called the “The Budget of Awakening to A Greater Lagos “is higher than that of 2019 by 34 per cent. The Governor said further that capital expenditure in the budget proposal amounts to N723.75 billion while recurrent expenditure stands at N444.81 billion.
The Lagos helmsman said the budget is expected to be funded by a projected total revenue of N1.071 trillion, and a deficit amounting to N 97.53 billion which will be financed by internal and external loans.
“The Proposed Budget Size for Year 2020 is 1.168 Trillion Naira; to be funded by a projected Total Revenue of 1.071 Trillion Naira, and a deficit amounting to 97.53 Billion Naira. This budget size is higher than the 2019 budget by 34%.
Capital expenditure amounts to 723.75 Billion Naira while the Recurrent Expenditure is 444.81 Billion Naira giving a 62:38 capital to recurrent ratio.
“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 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,“he said.
The Governor said his administration embarked on notable projects in line with the THEMES agenda based on 2019 budget which overall performance as of September stood at 69% based on the total revenue of ₦468.576. He, however, said that his administration seeks to aggressively invest in as well as develop the education, health and other physical infrastructure sectors, with the 2020 budget.
“..Mr. Speaker, 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 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 capital budgetary allocation of 48 Billion Naira, an increase of 60% over the 2019 provision of 30 Billion Naira. Similarly, in healthcare, we have provided for a capital expenditure of 33 Billion Naira, compared to the 2019 budget proposal of 21 Billion Naira.
“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,”the Governor said.
Explaining the uniqueness of the budget, Governor Sanwo-Olu said consultations were held across the three senatorial districts of Lagos State in addition to taking memoranda and feedback from stakeholders’ meetings organized by the lawmakers within their constituencies, which were also attended by cabinet members. He also said 2020 Budget will be supported by “a Performance Management System that will ensure that, by December 2020, we shall achieve an optimal budget implementation when compared with previous years.”
“It is therefore time to imagine a new Lagos -A ‘Greater Lagos’. It is time to create and realize new and audacious dreams, targets and goals.
“We have seen societies transform, within the course of two generations, from being trapped in a cycle of wars, mindless plunder, high rates of poverty, illiteracy, and crime, into livable, high-performing and world-dominating economies. Lagos will do it too.
“But like all great things, this will come at a cost. We have to make sacrifices for it. We have to reinvent and rethink Lagos,” he said.