Lagos Governor, Babajide Sanwo-Olu has presented a total budget size of N1.168trillion for 2020 to the House of Assembly. The budget is tagged “awakening to Greater Lagos”.
The Governor presented the budget estimate on Friday, allocating N723.6 billion to capital expenditure and N441.8billion for recurrent expenditure, which represents a ratio of 62-38%.
The Breakdown of the budget shows that N167.81 billion of the recurrent expenditure will go for personnel costs and other staff-related expenses, representing 22.02% of the total budget. According to the Governor, the budget for the personal cost is within the acceptable wage policy, which benchmarks 25% for staff overheads in the budget.
Speaking on the budget, the Governor said, “the 2020 Budget will be supported by a Performance Management System that will ensure that, by December 2020, we shall achieve an optimal budget implementation when compared with previous years. This is in line with our commitment to transparency and accountability in the management of public finances.
“We have provided N11.8 billion as counterpart funds in preparation for various social impact schemes. In addition, we have made provisions for N7.1 billion 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 (MSMEs) which are the engines for both economic and employment growth.”
While further commenting on the budget, Sanwo-Olu noted that the proposed budget would help the State achieve a sustainable social investment and scale up private sector-led economic growth through investment in infrastructure and security. He also disclosed that it would improve civic engagement in governance and foster partnership with the Federal Government and the civil society.
“Lagos faces an existential threat, arising from the interplay of demographic and climate change. Lagos will continue to be a magnet for multitudes within and outside Nigeria, in search of jobs and economic prosperity. These levels of migration put a phenomenal strain on the physical and fiscal resources of the state.
“In response to the perennial challenges of flooding in the metropolis, we have to triple the capital budget provision to tackle these observed problems from N3 billion in 2019 to N9 billion in 2020. We are embarking on massive desilting of major drain systems across the State next year.”