Lagos State Slashes 2020 Budget
Lagos State Executive Council has effected a cut in the state's 2020 budget following revenue pressures resulting from Coronavirus (COVID-19) pandemic.
Total expenditure is now N920.5 billion, less by N248 billion from the 1.68trillion it had budgeted with the financing deficit-increasing slightly by 11 per cent from N97.5 billion to N108.1 billion.
The State’s Commissioner for Economic Planning and Budget, Mr Sam Egube,
made this known at a press briefing on Thursday. He stated that the new figures would be presented to the House of Assembly for approval soon.
Mr Egube listed some of the factors that required 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.
He added that reduced public and private sector investments, increased inflation, the decline in goods and services as well as reductions in manufacturing activities which all portend lower Gross Domestic Product growth and increased unemployment.”
Egube said part of the state’s approach to COVID-19 shock already adopted by the government included maintaining a strong pandemic response, restarting the state economy, and re-imagining the way of the state’s operations.