Lagos Records 57% Half Year Budget Performance

Mr Samuel Egube, the Honourable Commissioner for Economic Planning and Budget for Lagos State, disclosed at the 2021 Budget Consultative Forum, that the Lagos State Government has recorded a 57% half-year budget performance. The forum was held at the Adeyemi Bero Auditorium and the Commissioner also disclosed that the State is just about to begin another budget cycle, expecting to generate the 2021 budget cycle.

The Commissioner explained that the State’s 57% half-year budget performance of N334.838 billion is absolutely higher than the 2019 budget performance which was recorded at 73% (N316.676 billion). He also added that the year 2020 Budget, which was officially approved on December 31st, 2019 reflected the current administration’s goals to enhance development across Lagos, as the budget was made in anticipation of a Covid-19 free world.

In his words, “The COVID-19 Pandemic, with its resultant health and economic impacts, has greatly affected the State, like other geographies around the world and also changed the context within which we execute the development Agenda.” He stated that the present economic realities, such as the fall in crude oil revenue, downward pressure on IGR, increase in fiscal deficit, devaluation of the naira, increased unemployment, reduced public and private investment, all present downside risks to the State government’s fiscal position.

Mr. Egube also asserted that since it was likely that the key drivers of the State’s revenues would worsen over the year as indicators pointed to this, the state predicts a revenue drop of 24% requiring 21% in expenditure reduction. However, he made it clear that it was noteworthy how in spite of the turbulent challenges, the Lagos State Government had managed to not only thrive, but also achieved greater revenue while managing the expenditure by the end of Q1 2020.

The Commissioner revealed that as a solution to the plaguing problems, the state had invested significantly in the initial response to the pandemic, providing support for both the health care centers, and the vulnerable masses and businesses.

He explained, “To thrive through the crisis, a holistic approach is imperative to mitigate the spread of the virus while stimulating economic activity. In view of the foregoing, we have decided to review the Y2020 Budget from the approved amount of N1.168.6 billion to N920.5 billion, while our debt sustainability ratio remains at 14.4%.”

Mr. Egube revealed that the aims and objectives of the Budget Forum were geared towards bringing the government closer to the people as an important aspect of the all-inclusive agenda of the present administration. He also stated that the forum was not only to update stakeholders on the 2020 half year budget performance, but also to inform the populace of the government’s plan for the rest of the year, obtain input, suggestions and contributions on the 2021 budget process, while promoting residents’ participation in the 2021 budget’s preparation.

The forum would he held at all the five divisions of the State; Ikeja, Badagry, Ikorodu, Lagos and Epe, respectively. Mr Adebayo Sodade, Special Adviser to the Governor on Economic Planning and Budget, said that the Forum was the second of its kind, organized by the Sanwo-Olu administration. He added that the State recognizes all inputs in line with the State’s budget preparations from stakeholders in the five divisions of Lagos.

The Special Adviser emphasized that rubbing minds with citizens provided the State ample opportunity to share profitable ideas about the Greater Lagos Project, while making sure that the desired interests are in tandem with the developmental agenda. He expressed the Government’s faith in the administration’s success depended solely on the cooperation of the entire populace. With this opportunity, he appealed to the residents on behalf of the government to fulfill all civic duties by paying taxes regularly, monitoring government projects, ensuring environmental friendliness and most importantly, being security conscious.