The Lagos House of Assembly has passed the year 2020 budget of N1.168 trillion.
The passage followed the presentation of a report by the joint committee of the House on Appropriation and Finance by the Chairman of the House Committee on Budget and Economic Planning, Hon. Gbolahan Yishawu.
The approved budget contained 78 amendments as recommended by the joint committees and approved by the House through a voice vote conducted by Mudashiri Obasa, the speaker of the house.
With the amendments, the approved budget contained N451, 528, 914, 805 billion from the Consolidated Revenue fund as the recurrent expenditure and N711, 032, 979, 185 Billion from Development Fund as the total capital expenditure.
The total budget for the year ending 31st December, 2020 is now N1.168, 561, 893, 990 trillion as against N1.168, 562 proposed by the Governor.
Governor Babajide Sanwo-Olu had presented a budget of N1.168 trillion for year 2020 on Friday 8th November, 2019 with education, and healthcare as top priorities.
With a proposed fiscal plan of N115 billion for public infrastructure in Lagos State, the Governor stated that next year, will be a massive construction site.
Sanwo-Olu had unveiled his administration’s plan to accelerate the growth of State’s economy by proposing aggressive investments in critical areas of priorities – physical infrastructure, environment, human capital and security.
He announced that the State would be spending N1.168 trillion, which will be funded from a projected Internally Generated Revenue (IGR) of N1.071 trillion. The budget deficit, put at N97.53billion, will be financed through internal and external loans, the Governor said.
Besides, the fiscal proposal also included a provision for the new minimum wage.
Giving a breakdown of the budget tagged “Awakening to a Greater Lagos”, Sanwo-Olu earmarked 62 per cent, representing N723.75 billion of total spending, for capital expenditure, he said that recurrent expenditure, put at 38 per cent, will take N444.81 billion.
He justified why his administration would be earmarking huge funds to the environment and public infrastructure, the Governor said Lagos had been facing combined threats from population explosion and climate change.
“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 phenomenal strain on the physical and fiscal resources of the state.
“This budget seeks to aggressively invest in and develop our education, health and other physical infrastructure sectors. As at September 2019, our capital expenditure on works and infrastructure was just N31 billion, which is less compared with N78 billion proposed in the current year. It is our intention to spend N115 billion on physical infrastructure in 2020.
“In response to the perennial challenges of flooding in the metropolis, we have to triple the capital budget provision to tackle this 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.”
Sanwo-Olu plans to spend N48 billion on education and technology. This represents 60 per cent rise in capital allocation to the Ministry of Education. On healthcare, the State plans to spend N33 billion on healthcare programmes, which include proposed revamping and re-equipping of over 350 Primary Health Centres.