Sanwo-Olu proposes N1.155trillion budget for 2021 fiscal year

Governor Babajide Sanwo-Olu on Tuesday presented a budget proposal of N1.155trillion to the State House of Assembly for approval for the 2021 fiscal year.

The Appropriation Bill christened the ‘Budget of Rekindled Hope’ has a capital expenditure of 703,272billion and a recurrent expenditure of 451,750billion.

According to Sanwo-Olu, the 2021 budget has a total revenue of N962.528billion and a total Internally Generated Revenue (IGR) of N795,744billion.

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It would be recalled that in May, the State was compelled to slash its 2020 budget by 21percent in line with new economic realities.

The budget was slashed from N1.169trillion to N920.5billion but the Lagos State House of Assembly approved the revised budget in August 2020 with a 10percent reduction in recurrent expenditure and a 24percent reduction in capital expenditure.

The revised 2020 Budget Appropriation Bill approved by the House has a total revenue of N812.47billion and a deficit financing of N108.01billion. The recurrent expenditure is N413.41billion, while capital expenditure is N507.06billion, making the capital to recurrent
ratio 55:45.

However, the 2021 budget according to Sanwo-Olu will among other things provide for youth employment as it has become expedient to leverage the State’s developmental efforts by focusing on sectors with job creating potential like Agriculture, Construction, Technology and Security.

“The budget also speaks to the restoration of economic balance as we navigate our way out of the negative impact of both the pandemic and the destruction of public assets following the ENDSARS protest hijack. We are set to improve the economic conditions and social safety needed for our youth and all hardworking Lagosians to flourish. We are committing resources to sectors that need to grow for our people to become self-reliant and economically empowered,” he said.

Consequently, the agricultural sector (food security plan) has a cumulative budget of N22.21billion while the state is committing a cumulative budgetary provision of N311.43billion to infrastructure, which will cover direct intervention through the Ministries of Works and Infrastructure, Water front, Transportation, the Judiciary, Schools and Seed Capital of N15billion for The Rebuild Lagos Trust Fund.

To continue to drive the State’s digitisation strategy, a total of N37.37billion investment would be committed in technology, while a total of N48.28billion and N111.94billion are committed to the environment and health services respectively.

Also in line with the urgent need to light up Lagos, he said, “We will begin a set of initiatives in the energy sector to ensure the Lagos economy is supported by power one community at a time. To this, we have committed a total of N32.58billion in the 2021 budget.”

Commenting on youth engagement and social works, the governor decried the increasing rise of substance abuse among youth, particularly the boys while he mentioned that his government has made it its prerogative to increase its financial commitment to youth mentoring, mental health support, and substance abuse rehabilitation.

He assured that a comprehensive action plan to address the issue of substance abuse would be unveiled very soon. The initiative he said is being driven by the Neighbourhood Watch, The Ministry of Youth and Social Development and the Office of Civic  Engagement.

“Consequently, there is a proposed allocation of N9.16billion in the 2021 Budget,” he said.

In his remarks, the Speaker of the Assembly, Rt. Hon Mudashiru Ajayi Obasa assured that the house will meticulously perform its constitutional duty.

He said, “COVID-19 really hit us all bad as a people. We recorded many sad deaths in the hand of this deadly virus including our own Hon. Tunde Braimoh and Senator Bayo Osinowo. At the same time, all sorts of events have happened in the year 2020 that will take time and resilience to address. These events have deepened the projected economic contraction this year, causing disruptions in supply-chain, and faster rise in inflation,”

“As we have heard Mr Governor, the major focus of the Year 2021 budget will be to address some of the challenges posed by these unprecedented events.

“You will agree with me that the effects of COVID-19 on the world economy cannot be over-emphasised. Right now, many people have been made unemployed by COVID-19. Some companies are still counting their losses. We were still grappling with the resultant effects of COVID-19 when the END SARS protests gritted us”

“Even though the protesters had good intentions to make their grievances known as regards police brutality in the country, it is sad to note that the action in the long run turned sour as some unpatriotic elements not only hijacked the situation but also saw it as an avenue to unleash mayhem. The devastating effects of the disruptions that followed the END SARS protests, in this state particularly, are beyond imaginations. The anarchy, burning, and looting of businesses have hit the economy with a blow beneath the belt.”

Obasa further reiterated that as a responsive Assembly, the lawmakers will work together with the Executive to bring succor to all the individuals affected in the aftermath of the EndSARS protest.