Governor Babajide Sanwo-Olu of Lagos State has presented an ambitious “Budget of Renewal” amounting to N2.246 trillion to the Lagos State House of Assembly. The budget, comprising recurrent expenditure of N1.02 trillion (45 per cent) and capital expenditure of N1.2 trillion (55 per cent), reflects the governor’s vision for revitalizing and advancing the state.
In the breakdown, Sanwo-Olu detailed the budget size, highlighting a revenue projection of N1.848 trillion and deficit financing of N398.3 billion. The deficit financing is set to be covered through a mix of external and internal loans and bonds, staying within the state’s fiscal sustainability parameters.
The governor anticipates internally-generated revenue of N1.251 trillion and Federal Government allocations of N596.629 billion, laying the financial groundwork for the state’s ambitious plans.
For recurrent expenditure, the proposed budget allocates N1.021 trillion, covering overhead costs, personnel expenses, and recurrent debt servicing. The breakdown includes N527.782 billion for total overhead costs, N319.23 billion for personnel costs, and N174.94 billion for recurrent debt servicing.
Turning attention to capital expenditure, Sanwo-Olu outlined a proposal of N1.224 trillion, categorizing it as N856.387 billion for capital projects and N367.893 billion for repayments.
The governor provided sectorial allocations, with N535 billion earmarked for economic affairs, N94 billion for the environment, and N156 billion for health. Additionally, education is allocated N199 billion, social protection receives N50 billion, and public order and safety secure N84 billion.
In his address, Sanwo-Olu assured citizens that challenging times are temporary, emphasizing the lasting dividends of necessary investments.
The governor also highlighted collaboration with the Federal Government to ease the impact of the fuel subsidy removal and combat high inflation, focusing on targeted food security initiatives and endorsing the Federal Government’s CNG-powered buses initiative for improved public transportation.
Source: Daily Nigerian