Lagos state Governor, Babajide Sanwo-Olu on Friday presented a proposed budget of N1.168 trillion tagged: “Y2020 budget of awakening to a greater Lagos” to the Lagos state House of Assembly, for consideration.
The governor in his presentation, said 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.
He said the proposed 2020 budget of N1.168 trillion is higher than the 2019 budget by 34 per cent and is to be funded by projected revenue of N1.071 trillion and a deficit of N97.53 Billion.
Also, the governor disclosed that capital expenditure in the 2020 budget will gulp N723.75 billion, while 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 N11.8 billion as counterpart funds in preparation for various social impact schemes. In addition, we have made provisions for N7.1billion 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 stated.
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.
Gov. Sanwo-Olu added that the budget deficit of N97.53 billion will be financed by both internal and external loans, adding that since revenue generation is the spine of any budget, the 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 as at September 2019, as against the 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, 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.
“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 billion in 2020,” he added.
Speaker of the Lagos state House of Assembly, Mudashiru Obasa, charged Gov. Sanwo-Olu to look in the direction of water and rail as means of effective transportation system in the state.