COVID-19: Lagos slashes 2020 budget by 14.7%

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COVID-19: Lagos slashes 2020 budget by 14.7%

By Emeka Anaeto

slashes 2020 budget

Lagos State has reduced its 2020 budget following revenue pressures resulting from Coronavirus (COVID-19) pandemic.

Total expenditure is now N920.5 billion, less by N248 billion or 14.7 percent from the N1.68 trillion it earlier budgeted.

The State’s Commissioner for Economic Planning and Budget, Mr. Sam Egube, announced this yesterday adding that the new figures would be presented to the state’s House of Assembly for approval soon.

He listed some of the factors that necessitated the review of the budget to include, “fall in crude oil prices with deleterious effects on statutory allocation expectations, downward pressure on its internally generated revenue devaluation of the naira, reduced public and private sector investments, increased inflation, decline in goods and services as well as reductions in manufacturing activities which all portend lower Gross Domestic Product (GDP) growth and increased unemployment.”

READ ALSO:Zenith Bank records N166.8bn gross earnings in Q1 2020

The breakdown of the revised budget shows 11 percent increase in budget deficit to N108 billion from N97.5 billion as recurrent expenditure goes down by 10 percent to N411.6 billion from N457.5 billion. Total capital expenditure reduced by 28 percent to N508.9 billion from N711.03 billion.

The revised total revenue, according to Egube, is N812.5 billion, a 24 percent drop from the initial projection of N1.11 trillion.

Egube stated that: “Part of the state’s holistic approach to the COVID-19 shock already adopted by the state government going forward includes maintaining a strong pandemic response, restarting the state’s economy and reimagining the way Lagos State operates.”

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