Lagos 2021: The Budget of Rekindled Hope

The Lagos State Governor, Babajide Sanwo-Olu has presented the year 2021 budget estimate of 1.155 trillion naira to the Lagos State House of Assembly.

A fiscal budget tagged “Budget of Rekindled Hope” according to the Governor, is aimed at advancing the agenda of the State, as it remains committed to building communal cohesiveness and Inter-ethnic unity among the residents.

Despite the challenges posed by the global COVID-19 pandemic and the recent destruction witnessed in the wake of the #EndSARS Protest, Governor Sanwo-Olu said that the year 2021 Budget estimate which prioritizes education, will help to deliver on all electoral promises.

The Governor who mentioned that the year 2020 Budget performance stood at seventy-Seven per cent at the end of the third quarter, was hopeful that the percentage may increase to eighty-eight per cent by the end of the year.

PENSION LAW

Sanwo-Olu, who gave a breakdown of the budget proposal hinted that the year 2007 pension law for ex-Governors and their deputies would be reviewed downward because of the dwindling revenue, this is to address shortfall in revenue and cut cost of governance.

“In light of keeping the costs of governance low and to signal selflessness in public service, we will be sending a draft executive bill to the House imminently for the repeal of the Public Office Holder (Payment of Pension Law 2007), which provides for payment of pension and other entitlements to former Governors and their Deputies.

“It is our firm belief that with dwindling revenues and the appurtenant inflationary growth rates, that we need to come up with innovative ways of keeping the costs of governance at a minimum while engendering a spirit of selflessness in public service,” Sanwo-olu stated.

BUDGET BREAKDOWN

According to Sanwo-Olu, the Capital Expenditure is N703.222billion while the Recurrent Expenditure is N451.75 billion.

He said: “Sectoral allocation is given thus, General Public, Services N136.28billion, Science and Technology, N28,272billion, Other General Public Services 108,005billion, Public Order and Safety 32,757billion, Economic Affairs, N381,85billion and Agriculture 18,31billion.”

“Others are, Commerce, 41,99billion, Toursim, Art & culture, N6,012billion, Energy and Mineral Resources, 32,585bn, Transportation, 98,931bn, Infrastructure – Works Family 172,238bn, Waterfront N11,78bn, Environment, N50,934bn, Drainage 11,936bn and Other Environmental Services 38,99billion.”

“The rest are, Housing and Community Amenities, N40,280bn, Health 118,360bn, Recreation, Culture and Religion, N5,170bn, Education, 143,655bn and Social Protection 9,15bn.

The budget targets Internally Generated Revenue of N732,659billion Capital Receipt, 63,085 billion; Federal Transfer, N166,784billion; Recurrent Expenditure, N451,750bn while the Capital Expenditure is N703,272 billion.”

He stressed that the Budget reflects the continued execution of the THEMES agenda of the State government.

PANDEMIC AND OTHERS

Sanwo-Olu explained that Coronavirus Pandemic and #ENDSARS protests have only heightened the need to urgently implement the various developmental programs for the benefit of the people.

He maintained that State will improve the economic conditions and social safety needed for our youth as well as address the youth demands, stressing that Agriculture is one of the sectors to make this happen.

“The 2021 Appropriation Bill 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. A pivotal crux of the 2021 budget will be the promotion of an entrepreneurial culture among our people.”

“In light of this, micro, small and medium enterprises will be strengthened because their activities help to facilitate socioeconomic advancement. We have done a lot to support the entrepreneurs in Lagos state and we will do more by providing technical and financial support so that they can in turn generate employment that will stimulate equitable economic prosperity.”

“We understand that we must consolidate our gains in the technology sector for accelerated economic growth and job creation. In order to achieve this, we will collaborate with major players in that space like Oracle, Microsoft and Google to prepare our youths for the IT job market.”

“As we focus on job and wealth creation, we will also prioritize the security of lives and property as well as local intelligence gathering in our communities by increasing significantly the number of our Neighbourhood Watch Officers over the next two years.”

He explained that his Government has made it its prerogative to increase its financial commitment to youth mentoring, mental health support, and substance abuse rehabilitation, stressing that very soon, the state will unveil a comprehensive action plan to address this issue.

The budget estimates is higher than the 2020 budget after it was reduced to Nine hundred and twenty-point five billion naira due to challenges of COVID-19 pandemic.

The budget represents two hundred and thirty-four billion naira higher than the 2020 budget after it was reduced.

However, it is lesser than the initial 2020 budget of One point six, eight trillion naira by Fifty-three point five billion naira.

 

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