COVID-19 forces Lagos govt to reduce 2020 budget by 21%

The Lagos State government on Thursday approved the reduction of the state’s 2020 Budget by 21 percent.

The state Commissioner for Economic Planning and Budget, Mr. Sam Egube, who disclosed this at a media briefing in Lagos, said the decision was aimed at mitigating the socio-economic impacts of the COVID-19 pandemic on the state.

He said the budget has been reduced from N1.168 trillion to N920.5 billion.

The Lagos House of Assembly had earlier this year passed N1.168 trillion as the 2020 Appropriation Bill for the state.

The approved budget comprised of N457 billion recurrent expenditure and capital expenditure of N711 billion.

The commissioner listed some of the factors that necessitated the review of the 2020 Budget to include: fall in crude oil prices with deleterious effects on statutory allocation expectations, downward pressure of Internally Generated Revenue (IGR) and devaluation of the Naira.

He added that reduced public and private investment, increased inflation, the decline in demand for goods and services and reduction in manufacturing activities led to increased unemployment and lower Gross Domestic Product (GDP) growth.