Lagos Has Good Performance Initiative To Generate More Money For Budget Deficit — Commissioners

Lagos Has Good Performance Initiative To Generate More Money For Budget Deficit — Commissioners

The Lagos State Government has disclosed that it has a very good performance initiative to gener­ate more money to take care of the state’s budget deficit.

The Commissioners for Eco­nomic Planning and Budget, Ope George, as well as his Finance counterpart, Abayomi Oluyomi, made the disclosure during a press briefing to analyse the Year 2025 Budget, which was held in Alausa Ikeja, on Friday.

George, while analysing the 2025 Budget, stated that the “Ap­proved budget was N3.367trillion, which comprises N2.071trn for capital expenditure and N1.295trn for recurrent expenditure, includ­ing debt charges, establishing a capital to recurrent ratio of 62:38.”

He explained that the total rev­enue estimate was N2.968trillion, with a deficit-funding require­ment of N398.662bn, which rep­resents 13% of the total revenue.

The commissioner, however, emphasised the budget’s strong dependence on the state revenue.

On his part, Oluyomi said the management of debt is sustain­able because the state has very good performance initiative to generate more revenue.

The Finance Commissioner, who also noted that the state has creative financing option that will not translate to debt, added: “The deficit financing may not be deficit, but we may not borrow money.”

Oluyomi explained that the Lagos State government’s focus is to deliver on what Governor Ba­bajide Sanwo-Olu has promised residents of the state.

George had, while shedding more light on the focus of the state government on the budget, noted that the “Budget is not just a fiscal document but structured around providing economic stability, en­vironmental stewardship and so­cial equity to ensure that Lagos continues to thrive sustainably for generations to come.”

The Commissioner explained that the budget is hinged on infra­structural sustainability, environ­mental sustainability, economic diversification, social inclusion and human capital development, governance and human capital development.