*Cuts N1.17trn budget to N920.5bn
Lagos State government Thursday said that it has reviewed the state’s Y2020 Budget to help mitigate the economic and social headwinds precipitated by the coronavirus pandemic.
With the reviewed budget, which has been approved by the state’s Executive Council, the budget is now N920.5 billion as against the ₦1,168.6 trillion hitherto approved by the State House of Assembly.
New Telegraph learnt that the state government was forced to review the budget following downward pressure of the Internally Generated Revenue (IGR), increased inflation, decline in demand for goods and services and reduction in manufacturing activities, which portends lower GDP growth and increased unemployment among others.
The state’s Commissioner for Economic Planning and Budget, Mr. Sam Egube, who disclosed this, siad part of the State’s holistic approach to the COVID 19 shock already adopted by the state government going forward included maintaining a Strong Pandemic Response, Restarting the State Economy and Reimagining the way Lagos State operates.
With the Strong Pandemic Response, the commissioner explained that the state government will engender food security and safety net mechanism, economic stimulus, and ensure public safety and wellbeing.
He added: “To restart the economy, we are going to optimize the state’s budget for investments in jobs and priority sectors through job creation, economic stabilization and fiscal consolidation. While to Reimagine the state’s economy, we will prepare the state to operate and thrive within the new reality with digitization, business environment reforms, improved economy and diversification of revenue sources.”
He gave the proposed breakdown of the revised budget as follows; the total budget size is reduced by 21% from N1,168.562 billion to N920.469 billion with the Financing Deficit increasing slightly by 11% from N97.533 billion to N108.005 billion
Recurrent Expenditure (Debt and Non-Debt) declines by 10% from the initial N457.529 billion to N411.608 billion and Total Capital Expenditure is reduced by 28% from N711.033 to N508.861 billion.
The revised Total Revenue, according to Egube, represents a drop of 24% from the projected N1,107,029 trillion to N812.464 billion.
Egube informed that the first quarter of Y2020 recorded a budget performance of 56% (₦163.2bn); which in absolute terms is higher than the 68% (₦148.3bn) recorded for the same period in 2019.