The Lagos State Governor, Babajide Sanwo-Olu, who just signed the 2022 Appropriation Bill, has explained the reason for the increase in the budget from the initial N1.388 trillion that was presented to the state house of assembly to the N1.758 trillion that was passed.
Sanwo-Olu said the increase was due to the need to capture all financing options for the Blue and Red line rail projects and other ongoing projects.
This was made known by the Governor during the budget signing ceremony at the Lagos House Ikeja, where he said that the capital expenditure stands at N1.166 trillion, while the recurrent expenditure was N591 billion.
Sanwo-Olu said the budget titled, ‘Budget of Consolidation’, is expected to consolidate infrastructural development across the state in line with his administration’s T.H.E.M.E.S. developmental agenda to address issues on education, infrastructure, health, technology, social intervention, rail projects and other critical areas.
What the Lagos State Governor is saying
Sanwo-Olu in his statement said, “Let me state at this juncture that the difference between the budget amount presented by the Executive and the final amount passed by the Legislature is largely accounted for by the decision to further accelerate already existing infrastructure projects and bring them to substantial levels of completion.
“We have also decided to capture in the Budget, the financing being deployed towards the Blue Line and the Red Line rail projects by private sector consortia, up to a level that will not put pressure on our cash flow and debt sustainability.
“In addition, this 2022 Appropriation Bill recognises several other already-funded project transactions that are now being accounted for as corporate transactions. What this means is that we are now choosing to capture in the Budget the significant value already accruing to the State from these projects.
“As I said during the presentation to the House of Assembly, this will be the last full-year budget in the tenure of this administration. As a result, a major focus of this budget will be ensuring the completion of all ongoing projects that are critical to achieving our desire to build a Greater Lagos in line with the goals and objectives of the T.H.E.M.E.S development agenda.”
The Governor also pointed out that the Commissioner for Economic Planning and Budget, Mr. Sam Egube would present to the public the full details and breakdown of the budget in due course.
He also commended the Speaker and members of the Lagos State House of Assembly for their cooperation and support, especially in ensuring the quick consideration and passage of the 2022 Appropriation Bill, which he presented on Wednesday, November 24.
The Governor also appreciated Lagosians for their support in ensuring the impressive performance in the implementation of the 2021 budget, against all odds, especially the continuous challenge posed by Covid-19.
In case you missed it
Recall that on Wednesday, December 29, 2021, the Lagos State House of Assembly passed the 2022 budget estimates of N1.758 trillion, with capital expenditure taking the lion share.
The approved budget by the state legislature represents about 26.7% increase when compared to an initial N1.388 trillion budget estimate presented by the Lagos State Governor, Babajide Sanwo-Olu.
The lawmakers also pointed out that the total budget size passed has an addition of leftover from the previous allocations in the 2021 budget.