Governor Babajide Sanwo-Olu on Friday presented a proposed budget size of N1.168 trillion, tagged ‘Y2020 Budget of Awakening To A Greater Lagos’, to the Lagos State House of Assembly, LAHA.
According to the governor in his presentation, the budget, which is fully consistent with the state’s THEMES agenda, gives priority to the completion of ongoing projects in the state, especially in the education and health sectors.
“The Proposed Budget Size for Year 2020 is N1.168 Trillion; to be funded by a projected Total
Revenue of N1.071 Trillion, and a deficit amounting to N97.53 Billion. This budget size is higher than the 2019 budget by 34 per cent. Capital expenditure amounts to N723.75 Billion, while the Recurrent Expenditure is N444.81 Billion 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 programmes 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.”
The Governor 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, he said, represents 22.02 per cent of the proposed Total Revenue, which is within the acceptable wage
policy of 25 per cent of Total Revenue, and includes a provision for the new minimum wage.
Sanwo-Olu added that the budget deficit of N97.53 Billion will be
financed by both internal and external loans. He said since revenue generation was the spine of any budget, this budget would support investment in the state’s
revenue generating agencies.
“As mentioned earlier, Mr. Speaker, this budget seeks to aggressively invest in and develop our
education, health and other physical infrastructure sectors. Although our capital spend on works and infrastructure was just N31 Billion Naira as at September 2019, as against the 2019 budget
proposal of N78 Billion, it is our intention to spend N115 Billion in 2020.
“Education will see a significantly increased capital budgetary allocation of N48 Billion Naira, an increase of 60 per cent over the 2019 provision of N30 Billion.
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.
“Similarly, in healthcare, we have provided for a capital expenditure of N33 Billion, compared to
the 2019 budget proposal of N21 Billion. 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 N3 Billion in 2019 to N9 in 2020, he said.
The Governor revealed that in putting this year’s budget together, consultations were held across the three senatorial districts, in addition to taking memoranda and feedback from stakeholders’ meetings organised by Honorable
Members of the House within their constituencies, which were also attended by Cabinet members.
He stressed that, secondly, the 2020 Budget will be supported by a
Performance Management System which will ensure that, by December 2020, the government shall have achieve an optimal budget implementation when compared with previous years. This, he added, is in line with his administration’s
commitment to transparency and accountability in the management of public finances.
“It is time to imagine a new Lagos – A “Greater Lagos”. It is time to create and realise new and audacious dreams, targets and goals. We have to rethink inter-communal relationships.
We have to rethink infrastructural development. We have to rethink our transport systems. We have to rethink our well-being. We have to move from glib statements about
Lagos as a center of excellence. Lagos has to be truly excellent in something. Something positive,
remarkable and admirable. In other words, a Greater Lagos. It is on this plank that the “2020 Budget of
Awakening To A Greater Lagos” is premised and I hereby present it for your kind consideration and
approval,” he said.