After a review of last year’s Budget of Rekindled Hope before the Lagos State House of Assembly, Governor Babajide Sanwo-Olu yesterday proposed a N1.39 trillion Budget of Consolidation to the lawmakers as 2022 Appropriation Bill.
The governor announced a huge capital vote to service critical sectors to consolidate the recovery of the state’s economy.
In the proposed ¦ 1,388,285,459,990.51 Bill, Sanwo-Olu said his government would be disbursing N325 billion to deliver infrastructure projects in key sectors to stimulate the economy.
The governor listed the critical sectors 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.
About N823.4 billion (representing 59 per cent of the 2022 budget) is earmarked for capital expenditure and recurrent expenditure of N565 billion (representing 41 per cent) would go into personnel cost, overhead and debt services.
The budget has N1.135 billion total revenue deficit financing of N253, 126 billion.
Sanwo-Olu put the recurrent expenditure at N564.93 billion (representing 41 per cent) and capital expenditure at N823.35 billion (representing 59 per cent) of the total budget size.
In reviewing outgoing year’s Appropriation Act, Sanwo-Olu said the “Budget of Rekindled Hope” has performed well, despite the challenges encountered in the fiscal.
He said: “In the first quarter of 2021, Internally Generated Revenue (IGR) stood at N128.2 billion, about 28 per cent higher than IGR in the corresponding quarter of 2020, which stood at N100.3 billion.
“Also, in that Q1 2021, capital expenditure amounted to N119.92 billion, representing 68 per cent performance on target.
“Q2 2021 revenue recorded a performance of 76 per cent of our projected target for the quarter, while expenditure came to 82 per cent of target. In the third quarter, the total revenue amounted to 78 per cent of projection, while total expenditure attained 79 per cent of the target.”
Presenting the 2022 estimates, Sanwo-Olu said: “This 2022 Budget is the next step on our journey to true and sustainable greatness in Lagos State. 2022 is a year in which we will focus obsessively on completing ongoing projects, while also expanding our social intervention programs and support for citizens, and for micro and small businesses.
“Despite experiencing one of the most challenging times in modern history in our beloved state, we have advanced in a manner that ensures that conviction of our progress is incontestable.
“The results speak very eloquently in the various facets of our communities, even in the face of numerous devastating situations, which would have been acceptable justifications for underperformance.
“Lagosians can testify to the improved standard of infrastructure delivered by our administration throughout the 377 wards across the state, which aligns with the state’s mission to eradicate poverty and promote economic growth through infrastructural renewal and development.