- Lagos State Governor Proposes N1.16trn for 2020 Budget
The Governor of Lagos State, Babajide Sanwo-Olu, On Friday presented a proposed budget of N1.168 trillion for the 2020 fiscal year.
Babajide Sanwo-Olu presented the 2020 budget to the state House of Assembly on Friday.
He said: “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.”
“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.”
In the budget tagged Budget of Awaken Lagos, 62 percent of the proposed budget would be spent on capital expenditure while 38 would be spent on recurrent expenditure.
“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.”
The Governor also stated that his administration budgeted N7.1 billion for industrial hubs, graduate internship programs, virtual markets for artisans and parks.
“This is in support for Micro, Small and Medium enterprises which are the engines for both economic and employment growth,” Sanwo-Olu said.
He added that a total of N167.81 billion of the recurrent expenditure would 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.”