Lagos State Government plans to raise N192. 49 billion through domestic and international lenders to supplement its N1.164 trillion budget.
The state expects N723.8 billion internal revenue and about N512 billion from taxes. The IGR represents 62.2 per cent of the total budget size
The N192.49 billion loan which represents about 16.6 per cent of the budget will be used to fund the budget deficit.
The state also expects N175.4 billion (15 per cent of the budget) from the Federation Account Allocation and N71.8 billion (6.2 per cent) capital receipts.
Sixty per cent or N702.94 billion of the budget will go into capital projects and 40 per cent or N460.59 billion on recurrent expenditure.
At a facts-behind-the-figures session on the 2021 budget yesterday, the government explained that the financial estimates underlined its commitment to aggressive development and maintenance of infrastructure across the state.
In the budget titled “Budget of Rekindled Hope”, the government said it will ramp up development of landmark projects, with the financial closure for the Fourth Mainland Bridge expected to be completed between the second and third quarter of this year.
It added that the internal red and blue rail lines were expected to become operational by the third quarter of next year.
Commissioner for Economic Planning and Budget, Sam Egube, said the state will raise N100 billion through domestic bond issuance and about N41 billion domestic loans. It is to source N57 billion from foreign lenders.
The commissioner added that N166.6 billion was provided for the construction and maintenance of roads and other infrastructure.
According to him, N13.66 billion will be spent on the completion of Agege Pen Cinema flyover, Oregun bridge network as well as Agric-Isawo and Ijede roads in Ikorodu, among others.
He also explained that the government is hopeful it will attain its IGR target of N512 billion by expanding the tax net through a simple, tech-driven and transactional process that enhances operational efficiency.
Egube said the 2021 budget was tagged “Budget Of Rekindled Hope” to reflect the state’s determination to rise above the challenges of COVID-19 pandemic and #EndSars protests with a view to achieving the developmental agenda of the Babajide Sanwo-Olu’s government.
Commissioner for Finance Dr Rabiu Olowo said the debts are totally tied to capital projects.
He noted that with a debt-to-revenue ratio of 19.8 percent in 2020 projected to rise to 22 per cent in 2021, the state remains considerably below the World Bank and Federal Government’s benchmarks of 40 per cent and 30 per cent respectively.
Special Adviser on Works and Infrastructure, Aramide Adeoye, said the government had taken all necessary steps in line with its commitment to transparency and international best practices to ensure that the Fourth Mainland Bridge is delivered as scheduled at fair value to the government.
