October 27, (THEWILL) – The governor of Lagos State, Babajide Sanwo-Olu, on Thursday, presented the budget for the year 2023 to the state House of Assembly.
Sanwo-Olu presented a total sum of ₦1.692 trillion to the Assembly, tagged the 2023 “Budget Of Continuity” which would unlock a greater Lagos.
This is N66 billion lesser than the 2022 budget which stood at N1.758 trillion.
During the formal presentation of the budget, the governor said it is to consolidate the efforts of his administration in his first four years, adding the budget is significant, being the last budget before the 2023 election.
Sanwo-Olu said the new Blue Line and Red Line rails would commence operations by the first quarter of 2023.
He noted that the new rails would generate thousands of jobs upon their commencement of service.
The governor said budgets for 2020 and 2021 and 2022, were used to improve the standard of infrastructure in the 377 wards across the state, in alignment with his administration’s mission to eradicate poverty and promote economic growth through infrastructural renewal and development.
The 2023 budget comprises a Total Revenue of N1,342,670,649,640 and Deficit Financing of N350,000,000,000. It has total Internally Generated Revenue (IGR) of N1,108,435,649,640 and Total Federal Transfer of N234,235,000,000.
Sanwo-Olu added that the budget has a recurrent expenditure of N759,958,569,792, comprising Total Overhead Cost of N403,653,328,479; Total Personnel Cost, N247,295,312,088 and Recurrent Debt Service, N109,009,929,224.
The N403,653,328,479 Total Overhead Cost is broken down into Overhead, N221,957,283,661; Subvention, N93,501,258,220 and Dedicated, N88,194,786,596.
The 2023 budget has a Capital Expenditure of N932,712,190,102, comprising capital expenditure, N670,134,079,150 and Repayment, N262,578,110,952.
“The budget size is made up of recurrent expenditure of N759,958,569,792 (45%) and capital expenditure of N932,712,190,102 (55%).
“The deficit financing shall consist of external and internal loans and bonds which are well within our fiscal sustainability parameters”, Sanwo-Olu said.
In the sectoral breakdown, Economic Affairs has the highest budget of N339,482,825,430, representing 20.06 percent of the budget, while General Public Service came second with N308,363,331,313, representing 18.22 percent of the budget. Education came third with N153,445,318,140 (9.07%), while Health came next with N67,358,643,068.
However, Sanwo-Olu lamented that Lagos had continued to experience increased pressure on social services due to unhindered migration to our State.
“It is for this reason that I have always sought and still continue to reiterate the need for Lagos to be accorded a special status as a National Asset.
“As a microcosm of the entire country, Lagos State deserves all the support it can get at the national level. The development of any megacity like ours is the responsibility of both the public and private sectors, and to this end, we will continue to explore public-private-partnership strategies in the provision of infrastructure, social services, and the conversion of challenges to opportunities within the context of scarce resources”, he said.
See the full breakdown below:
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