59% capital while 41% is recurrent expenditure.

‘Seun Ibukun-Oni

The executive governor of Lagos state, Babajide Sanwo-Olu today presented the Year 2022 budget to the State House of Assembly.

In his budget speech, he said: “this fiscal plan tagged Budget of Consolidation, we allocated a higher capital expenditure that will service key growth areas in order to consolidate the recovery of the State’s economy and positively transform residents’ livelihood.”

He further said: “We proposed a total sum of N1.388 trillion and we have targeted our key growth areas as Works and Infrastructure, Waterfront Infrastructure Development, Agriculture, Transportation, Energy and Mineral Resources, Tourism, Entertainment and Creative Industry, Commerce and Industry, Wealth Creation and Employment.”

N823.4 billion, represents 59% of the 2022 budget was earmarked for capital expenditure while N565 billion representing 41% was devoted to recurrent expenditure which includes personnel cost, overhead and debt services.

Sanwo-Olu explained that his administration’s vision through faithful implementation of the T.H.E.M.E.S Agenda in the last couple of years have repositioned Lagos and in his words; “we are now looking towards the future with the activation of the implementation of a 30-year development plan (2021-2051) which has replaced the previous 13-year growth plan developed in 2012.”

He maintained that the Year 2022 Budget is the next step on the journey to true and sustainable greatness in Lagos. “The challenging environment requires that we focus our interventions on areas of greatest social impact and achieving the greatest good for the greatest number in the shortest possible time” he said.

He promised to use next year as an excellent opportunity to consolidate on what he has done so far, and ensure that every effort, investment inflow, partnership, business policy is translating maximally into noticeable positive impact in the lives of l
Lagosians.

Finally, highlighting the funding sources for the budget, he said: “I would like to reiterate that we are working very hard to improve our revenue sources. Of the total proposed expenditure, N1.135 trillion would accrue from Internally Generated Revenues (IGRs) and federal transfers, while deficit financing of N253 billion would be sourced from external and domestic loans, and bonds projected to be within the State’s fiscal sustainability parameters.”