Governor Babajide Sanwo-Olu, on Friday, presented the Year 2020 Budget proposal to the House of Assembly, unveiling 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.
Sanwo-Olu 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 N97.53 billion, 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 recurrent expenditure, put at 38 per cent, will take N444.81 billion.
About N167.81 billion of the recurrent expenditure will go for personnel costs and other staff-related expenses, representing 22.02 per cent of the total revenue. This, the Governor noted, is within the acceptable wage policy, which benchmarks 25 per cent staff overheads in the budget.
Sanwo-Olu said 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 said it would also improve civic engagement in governance and foster partnership with the Federal Government and the civil society.
Explaining why his administration will 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.
He said: “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 over 350 Primary Health Centres.
Sanwo-Olu described the proposed budget as “unique”, noting that its details reflected the wishes of residents, following series of consultations and feedback from stakeholders across senatorial districts.