By Modupe Gbadeyanka
Governor Babajide Sanwo-Olu has presented a budget of N3 trillion for the 2025 fiscal year to the Lagos State House of Assembly.
Mr Sanwo-Olu brought the 2025 appropriation bill to the state’s legislative arm of government for approval as required by law.
He christened it Budget of Sustainability, informing the Speaker of the House, Mr Mudashiru Obasa, and his colleagues that it comprises a recurrent expenditure of N1.239 trillion and capital expenditure of N1.766 trillion, representing a ratio of 41 per cent and 59 per cent, respectively.
The Governor informed the House that in the 2025 fiscal year, his administration has projected to generate a revenue of N2.597 trillion, with a deficit of N408.9 billion to be sourced from borrowing.
“Mr Speaker, it is now my pleasure to present to you today the Y2025 Budget proposal, tagged Budget of Sustainability.
“The Year 2025 Budget as proposed has a total budget size of N3,005,935,198,401, comprising a total revenue of N2,597,034,000,000 and deficit financing of N408,902,000,000.
“Total revenue comprises our Internally Generated Revenue (IGR) of N1,970,897,000,000, and total federal transfers of N626,137,000,000.
“We equally propose a recurrent expenditure of N1,239,818,000,000 comprising total overhead, total personnel cost and recurrent debt service, as follows:
“Total overhead cost: N722.586 billion, as follows: overhead: N432.580 billion, subventions: N139.728 billion, dedicated funds: N150.278 billion, total personnel cost: N392.000 billion, recurrent debt charges: N125.232 billion
“For capital expenditure, we propose a total figure of N1,766,117 trillion, as follows: capital expenditure: N1.452 trillion, repayments: N313.515 billion.
“Mr Speaker, as you will notice, the budget size is made up of recurrent expenditure of N1.239 trillion (41 per cent) and capital expenditure of N1.766 trillion (59 per cent). The deficit financing, which is within our fiscal sustainability parameters, shall consist of external and internal loans and bonds,” Mr Sanwo-Olu told the lawmakers.