Lagos State government on Friday said the deficit of 521.275 billion of the 2022 budget will be funded through 1.237 trillion targeted revenue as well as combination of internal, external loans and bond issuance.
The Commissioner for Budget Economic Planning, Sam Egube, revealed this during a media briefing on the analysis of the Year 2022 Budget, tagged: “Budget of Consolidation,’’ at Alausa, Ikeja, saying the deficit funding requirement is 521.275 billion.
The commissioner was flanked by other members of the state executive council like his counterparts in Information and Strategy, Gbenga Omotoso, Commissioner for Transportation, Dr. Fredric Oladeinde, Commissioner for Education, Mrs. Folashade Adefisayo, Special Adviser Ministry of Works and Infrastructure, Aramide deyoye, among others at the inter-ministerial briefing.
He said the revised Y2021 Budget of 1.257 trillion had a total revenue of 984.573 billion and deficit financing of 271.994 billion; the Capital to Recurrent Ratio stood at 59:41 that is, Capital Expenditure of 743.224 billion and a Recurrent Expenditure of 513.343billion.
He said: “The Y2022 budget, which we have christened the “Budget of Consolidation” is a landmark budget in the history of the state both in its size and texture. The approved Y2022 Budget of 1.758 trillion made up of 1.167 trillion Capital Expenditure and 591.281billion Recurrent Expenditure, resulting in a Capital to Recurrent ratio of 66:34, is strongly in favor of Capital Expenditure.
“Total Revenue is estimated at 1.237 trillion while deficit funding requirement is 521.275 billion, which at 21 per cent of debt service to total revenue is within the fiscal sustainability benchmarks of 40 per cent.
“Our overriding budget objective to achieve a budget of consolidation is substantially, complete existing and ongoing infrastructure project infrastructure is essential to statewide economic and social development.
“We have increased our investment in infrastructure by 86 per cent over the prior year budget to N619 billion representing 35 per cent of the entire budget size.
He said a 73.5 per cent (N599,04 billion) of the projected TIGR is expected to be contributed by Lagos Internal Revenue Service, LIRS, while about 19.2 per cent (N156.65billion) is expected to be generated by other MDAs of government.