Lagos Assembly passes budget size of  N2.267trn for 2024

IBRAHIM QUADRI

The Lagos State House of Assembly on Friday passed a total of N2,267,976,120,869 as the 2024 budget estimates.

The passage which had a slight increase up from the estimate presented by the State Governor, Mr Babajide Sanwo-Olu, was at a plenary session presided over by the Speaker, Rt. Hon. Mudashiru Obasa.

Governor Sanwo-Olu, had on Wednesday December 13, 2023 presented a budget size of N2.246 trillion for 2024 to the House.

Sanwo-Olu presented the budget titled ‘Budget of Renewal’  comprised N1.02 trillion recurrent expenditure, which is 45 percent of the total budget, and N1.22 trillion capital expenditure, which is 55 percent.

He added that the state anticipates internally-generated revenue of N1.251 trillion and federal government allocations of N596.629 billion.

The budget representing 58 percent Capital Expenditure and 42 percent Recurrent Expenditure was approved following a unanimous voice vote by all the lawmakers present at the sitting.

“A bill for a law to authorise the issuance and appropriation of N952,430,566,998 from the Consolidated Revenue Fund for Recurrent Expenditure and N1,315,545,553,871 from Development Fund for Capital Expenditure thereby totaling a budget size of N2,267,976,120,869 for the year ending 31st December, 2024 be passed into law,” the Speaker had raised on the floor as the budget report was read a third time.

Obasa, thereafter, commended the lawmakers for their dedication and cooperation at ensuring a quick passage of the Appropriation Bill while directing the Clerk of the House, Barr. Olalekan Onafeko, to forward a copy of the approved budget to the Governor for assent.

Prior to its passage, Hon. Sa’ad Olumoh, chairman of the joint-committee on Budget and Finance, had presented a report containing some recommendations to the House.

Among the recommendations is that the Public Works Corporation, the Water Corporation and the state-owned tertiary institutions be placed on first-line charge to enable them perform optimally.

Recall that Obasa, during the presentation of the budget by the governor, urged the government should ensure a functional budget.

“It is highly important for us to apply the right indices towards ensuring a performing and functioning budget that would lift our people out of poverty and reposition the state towards infrastructural growth and renewal.

“Palliatives should move from just giving people garri, rice, beans or even money. We should have a direction that is focused, impactful and deeply backed up by effective policy implementations.

“For instance, in the name of palliative care, let there be provision of drugs at all public hospitals in the state at subsidised rates. At the same time, focus should be on a downward review of treatment costs in these hospitals,” the Speaker said during the budget presentation.

During the presentation, Sanwo-Olu said, “The deficit financing shall consist of external and internal loans and bonds, which are well within our fiscal sustainability parameters.”

“We propose a recurrent expenditure of N1.021 trillion, comprising overhead, and personnel costs and recurrent debt servicing,’’ Sanwo-Olu said.

He gave details of total overhead costs of N527.782 billion as overhead of N304.753 billion, subventions of N123 billion, and dedicated funds amounting to N100 billion.

He added that the personnel cost was N319.23 billion, while recurrent debt servicing was proposed at N174.94 billion.

“For capital expenditure, we propose N1.224 trillion classified as the capital expenditure of N856.387 billion and repayments of N367.893 billion,’’ he said.

Giving highlights of sectorial allocations, Sanwo-Olu said N535 billion was budgeted for economic affairs; N94 billion for environment; and N156 billion for health.

Education got N199 billion; social protection got N50 billion, while public order and safety had N84 billion.

The Governor had assured members of the House, better times were coming. We have gone through some very difficult times. 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 to alleviate the pains of the fuel 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 the buses to each state for public transportation,” Sanwo-Olu  had hinted during the budget presentation.