Sunday, May 19, 2024

Sanwo-Olu Budgets N2.246trn for 2024 Fiscal Year

Lagos State Governor, Babajide Sanwo-Olu on Wednesday presented a budget proposal of N2.246 trillion to the State House of Assembly for approval for the 2024 fiscal year.

The 2024 budget is N478 billion higher than the 2023 budget which stood at N1.768 trillion.

The proposal, tagged “The Budget of Renewal,” has a Recurrent Expenditure of N1.021 trillion and a Capital Expenditure of N1.224 trillion.

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Presenting the budget before the State House of Assembly on Wednesday, Sanwo-Olu said the proposal comprising a Total Revenue of N1.847 trillion and Deficit Financing of N398.283 billion.

“Total Revenue comprises our Internally Generated Revenue and Total Federal Transfers as follows: Total IGR (N1.251,322 Trillion), and Total Federal Transfer (N596.629 Billion).

“We equally propose a recurrent expenditure of N1.021 Trillion, comprising total overhead, total personnel cost and recurrent debt service,” he said.

A breakdown of the recurrent expenditure shows that Total Overhead Cost is put at N527.782 billion, comprising Overhead (N304.753 billion), Subventions (N123.010 billion); dedicated Funds amounting to N100.02 billion; Total Personnel Cost of N319.230 billion and Recurrent Debt Service of N174.94 billion.

The capital expenditure of N1.224 trillion is broken down into Capital expenditure, N856.387 billion and Repayments of N367.893 billion.

The sectoral allocation shows that Economic Affairs has the largest share of N535 billion, followed by Education, which has N199 billion and Health, which has N156 billion.

Others are Environment, N94 billion, social protection, Public Order and Safety, N84 billion and Social Protection, N50 billion.

“The budget size is made up of recurrent expenditure of N1.021,954trn (45%) and capital expenditure of N1.224,280 (55%). The deficit financing shall consist of external and internal loan and bonds which are well within our fiscal sustainability parameters,” Sanwo-Olu stated.

The governor said better times are coming for Lagosians, saying that the people had gone through some very difficult times, “but while the pain is temporary, the dividends of the necessary investments we are making will be here to stay.

“We are working closely with the Federal Government to ramp up relief measures to help the people of Lagos State alleviate the pains of the subsidy removal and the impact of high inflation.

“We are especially concerned about transportation and food costs, and in 2024 we will be keying into the targeted Food Security initiatives of the Federal Government.

“For transportation, we are fully on board with the Federal Government’s CNG-powered buses initiative, which will deliver sizable numbers of these buses to each State, for public transportation,” he said.

Recall that the Federal Government, in the Appropriation Bill, gave an average crude oil production benchmark of 1.78 mb/d, and a crude oil price benchmark of 77.96 dollars.

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