Lagos State government has proposed a budget of N1.168 trillion for the year 2020. The budget is a 34% increment o the 2019 budget with capital expenditure amounting to N723.75billion while the recurrent expenditure is N444.81billion.
While presenting the budget before the House of Assembly on Friday, Lagos State governor, Babajide Sanwo-Olu said the budget tagged “The Budget of Awakening’ is fully consistent with ‘our THEMES agenda, and gives priority to the completion of ongoing projects.’
According to him, the budget will be funded by projected total revenue of N1.071trillion, and a deficit amounting to N97.53billion. A breakdown of the budget indicates that education will see a significantly increased capital budgetary allocation of N48billion compared to N30billion in the 2019 budget. In the area of health, a capital expenditure of N33billion was proposed compared to N21billion in the 2019 budget.
The governor also gave hints on the new minimum wage with a proposed N167.81billion of the recurrent expenditure which ‘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,” he said.
In the area of works and infrastructure, the state will spend N115billion as against N78billion in the 2019 budget, while N9billion has been earmarked to tackle flooding in the state as compared with N3billion in 2019.
On wealth creation and support for Small and Medium Enterprises, a total of N11.8billion was proposed as counterpart funds in preparation for various social impact schemes, while N7.1billion will be spent on ‘industrial hubs, parks, graduate internship programs and virtual markets for artisans. To cushion the deficit I the budget, the governor both internal and external loans will be sourced to provide for the N97.53billion deficit in the budget.
Sanwo-Olu said the budget will help to improve the standard of living in the state especial I areas of health, education and infrastructure development.
“This budget seeks to aggressively invest in and develop our education, health and other physical infrastructure sectors. 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 and administration, leveraging technology.
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.
He said by the end of December 2020, the state would have achieved its objectives and surpassed his predecessors’ achievements, adding his administration is ready to face the challenges ahead.
‘I am energized because, all through the course of history, communities have faced existential threats at some point or the other. And what has made the difference time and again is an acknowledgement of the threats, and the collective will-power to take decisive action, however seemingly difficult it may be in the short term.
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. 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. I am confident that with the creativity, ingenuity and resilience of our people, and the determination of this administration, our aspirations for a Greater Lagos, a prosperous, safe and secure Lagos, are very much on course,” he said.