Lagos State governor, Mr. Bababjide Sanwo-Olu, yesterday, presented the 2022 Appropriation Bill of over N1.388 trillion before members of the state House of Assembly for consideration and approval.
The 2022 Appropriation Bill, tagged: “Consolidation,” has a budget size of ₦1,388,285,459,990.51, comprising a total revenue of ₦1,135,159,092,822.30 and deficit financing of ₦253,126,367,168.21.
Further analyses of the budget size revealed that it has a recurrent expenditure of ₦564,934,331,886.41 (41 per cent) and capital expenditure of ₦823,351,128,104.10 (59 per cent).
The governor explained that deficit financing would be by way of a combination of external and domestic loans and bonds, which are well within the state’s fiscal sustainability parameters.
The 2022 budget estimate is a bit higher than that of the outgoing year, 2021 which was N1.163 trillion.
Speaking at the budget presentation, at the Assembly Complex, the governor said it was intended to reflect the determination to rise above the challenges that had affected the development indices in the last 10 months, occasioned by challenges of the COVID-19 pandemic.
Governor Sanwo-Olu who reiterated the need for the federal government to grant special status for Lagos stressed that the 2022 budget was to allow for consolidation of the gains recorded by the government over the years.
Sanwo-Olu noted that there had been a corresponding review of the accruals from the Statutory Allocations and VAT in line with the downward review of the Federal Budget’s Benchmark Oil Price to $57 per barrel.
A recurrent expenditure of ₦564,934,331,886.41, comprised of total Overhead, total personnel cost, and recurrent debt service, was proposed while, a total Capital Expenditure of ₦823,351,128,104.09 was also proposed.
‘’Recurrent Expenditure showed a total Overhead Cost -₦303,272,873,298.10 comprising: Overhead Cost -₦158,734 783,394.89− Subventions: ₦89,642,302,488.07 − Dedicated-₦54,895,787,415.14, total personnel cost -₦189,399,268,261.49 and recurrent debt service- ₦72,262,190,326.82.
‘’The Total Capital Expenditure of ₦823,351,128,104.09 was proposed in line with Classification of Functions of Government (COFOG).’’
Sectoral allocation showed that the General Public Service would N171,550,737,532bn which represents 16.96 per cent. Public Order and Safety N27,495,540,668bn with 4.45 per cent and Economic Affairs N52,552,479,436bn with 23.41 per cent.
‘’Environment has N27,333,214,487bn at 3.59 per cent, Housing and Community Amenities N11,058,163,499bn at 5.62 percent, Health N87,875,869,487bn representing 8.87 percent, Recreation, Culture and Religion N4,320,392,482bn representing 1.21 percent.
Personnel Cost (Service wide and Pension)- 53,147,182,926, 3.83 percent, Grants & Counterpart Fund 55,852,385,009 at 4.02 percent and Statewide at 22.83 percent.
“Lagos is and must be recognized as the national asset that it is – which is a pre-eminent melting pot of cultures in Nigeria; the economic capital of Nigeria and the most populous megacity in all of Africa.’’