In a significant move towards economic revitalization, Governor Babajide Sanwo-Olu of Lagos State has presented the eagerly awaited N2.246 trillion budget for the fiscal year 2024 to the State House of Assembly. The budget, aptly named the “Budget of Renewal,” reflects the government’s commitment to ushering in a new era of growth and development in the state.
Highlighting the key components of the budget, Governor Sanwo-Olu revealed that the capital expenditure for the year would be N1.22 trillion, constituting a substantial 54.4% of the total budget. This allocation underscores the administration’s focus on investing in critical infrastructure projects and initiatives aimed at fostering sustainable development.
In parallel, the recurrent expenditure for 2024 is pegged at N1.02 trillion, encompassing overhead costs, personnel expenses, and recurrent debt service obligations. This balanced allocation reflects the government’s strategic approach to managing recurrent obligations while prioritizing capital investments.
Governor Sanwo-Olu outlined the projected revenue for the fiscal year 2024, standing at an ambitious N1.847 trillion. This projection encompasses revenue sources such as Internally Generated Revenue (IGR) and federal government allocations. The governor expects IGR to contribute significantly, with an estimated N1.251 trillion, while Federal Accounts Allocation Committee (FAAC) disbursements are anticipated to reach N596.62 billion.
During the budget presentation, Governor Sanwo-Olu acknowledged the challenges faced by the state and the nation in 2023, citing the record inflation that led to a cost-of-living crisis. However, he emphasized that these challenges presented opportunities for Lagos, and he went on to enumerate the notable achievements of his administration across various sectors, including infrastructure, healthcare, and education.
Reflecting on the 2023 budget performance, Governor Sanwo-Olu reported an impressive 78% implementation rate, with the capital expenditure achieving an even higher performance rate of 80%. This attests to the government’s commitment to effective financial management and project execution.
The governor also highlighted collaborative efforts between the state and the federal government, particularly in the areas of transportation and poverty alleviation. Acknowledging the impact of the fuel subsidy removal on Lagosians, Governor Sanwo-Olu stated, “We are working closely with the Federal Government to ramp up relief measures to help the people of Lagos State alleviate the pains of the subsidy removal and the impact of high inflation.”
Expressing concern over rising transportation and food costs, the governor announced plans to align with the federal government’s targeted Food Security initiatives in 2024. He also affirmed the state’s commitment to the Federal Government’s Compressed Natural Gas (CNG)-powered buses initiative, which aims to enhance public transportation infrastructure.
In conclusion, the unveiling of the N2.246 trillion budget signals Lagos State’s determination to overcome challenges and usher in a period of renewal and sustainable development. As the state looks forward to the fiscal year 2024, the proposed budget reflects a strategic and balanced approach to economic growth, prioritizing critical sectors and collaborative efforts to address the needs of the people. Infostride News will continue to provide comprehensive coverage of the budget deliberations and its subsequent impact on the state’s progress.
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