The Lagos State House of Assembly on Wednesday evening passed the 2022 budget estimates of N1.758 trillion, with capital expenditure taking the lion share.
The approved budget by the state legislature represents about 26.7% increase when compared to an initial N1.388 trillion budget estimate presented by the Lagos State Governor, Babajide Sanwo-Olu.
The budget, which was passed at a sitting presided over by the Speaker, Mr Mudashiru Obasa, follows a presentation of the budget report by Mr Gbolahan Yishawu, Chairman, House Committee on Economic Planning and Budget.
Yishawu, in his presentation of the budget titled, ‘Budget of Consolidation’, explained that there was a slight increase in the grand total from the initial N1.38 trillion to N1.758 trillion.
What the Chairman House Committee on Economic Planning and Budget is saying
Yishawu pointed out that the total budget size passed has an addition of left over from the previous allocations in the 2021 budget.
The lawmaker said, “The leftover was rolled into ‘contingency fund’ in the 2022 budget and this has also put the capital and recurrent expenditures ratio at 66:34.
`The recurrent expenditure is N591.28 billion while the capital expenditure is N1.167 trillion which brings the budget total size to N1,758 trillion.’’
He also pointed out that all the loans, the bonds and Irrevocable Standing Payment Order (ISPO) were already captured in the budget.
Obasa, in his reaction after the passage of the budget, thanked his colleagues for working assiduously to ensure that the appropriation bill was passed.
He directed the Acting Clerk of the House, Mr Olalekan Onafeko to send a clean copy of the budget estimates that was passed to the governor for his assent.
What you should know
Recall that on November 24, 2021, Governor Babajide Sanwo-Olu, presented a budget estimate of N1.388 trillion for the 2022 fiscal year to the state house of assembly for consideration and passage.
The Lagos State House of Assembly had in December 2020, approved the sum of N1.163 trillion as the budget estimate for the year 2021.