Lagos State Governor, Babajide Sanwo-Olu Friday presented the 2020 Lagos State budget estimates of N1.168 trillion to the state House of Assembly.
“The Proposed Budget Size for the 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,” Sanwo-Olu said.
“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.”
The budget tagged Budget of Awaken Lagos of 62 percent capital and 38 recurrent expenditure provided a list of projects and programmes that would be executed in 2020 inline with his THEMES agenda, which gives priority to the completion of ongoing projects.
“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,” Sanwo-Olu said.
“In line with this, we have provided N11.8bn as counterpart funds in preparation for various social impact schemes.”
Sanwo-Olu also noted that his government has 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,”
He also stated that 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,” Sanwo-Olu said
“The budget deficit of 97.53 Billion Naira will be financed by both internal and external loans. Since revenue generation is the spine of any budget, this budget supports investment.”