By Augustine Akhilomen
Lagos State Governor, Babajide Sanwo-Olu on Friday presented a budget of N1.168 trillion to the Lagos State House of Assembly for approval for the 2020 fiscal year.
The 2020 budget size is higher than the 2019 budget by 34 percent.
Presenting the budget at a ceremony on Friday, the Governor said the budget will be funded by a projected Total Revenue of 1.071 Trillion Naira, and a deficit amounting to 97.53 Billion Naira.
According to the breakdown, 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.
He said the budget is key for the development for the State, adding that focus has been placed on wealth creation, adding that his administration will take deliberate steps in courting a partnership between the people and various development institutions.
Speaking on the contents of the budget, Sanwo-Olu said N11.8bn has been provided as counterpart funds in preparation for various social impact schemes, while N7.1bn has been earmarked 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. 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.
He said the budget deficit of 97.53 Billion Naira will be financed by both internal and external loans.
More details later.