Y2020 BUDGET: OBASA COMMITS RE-ORDERING PROPOSAL TO JOINT COMMITTEE ON ECONOMIC PLANNING & FINANCE.
Rt. Hon. (Dr.) Mudashiru Obasa, Speaker of the Lagos State House of Assembly has committed Governor Babajide Sanwo-Olu’s Y2020 Budget re-ordering request to the Joint Committee of Economic Planning, Budget and Finance to review and report back to the House in one week.
The proposal which was sent to the House in a letter addressed to the Clerk of the House; Mr. Azeez Sanni by the governor is to necessitate the revision of Y2020 Budget affected by the Covid-19 pandemic barely three months into the year.
Mr. Governor while acknowledging the House on the approved budget of ₦20bn for Covid-19 pandemic, said the headwind generated by the Covid-19 pandemic has necessitated the need for a reconsideration of Y2020 Budget.
He was of the opinion that some of the underlined assumptions on which the budget was based has changed drastically, indicating that the key drivers of revenues had worsened during the course of the year.
He added in the proposal that the revenue had dropped by 24% and contemporarily 21% will drop in expenditure, while the proposed revision is expected to reduce the total budget size from ₦1.685, 200trn to ₦920.469bn with the difference of ₦1.242, 48.093bn, and reduced apex by ₦202.172bn as well as reduce total overheads recurrent by ₦49795bn.
Mr. Governor therefore, solicited the House to consider the proposal for the revision of Y2020 budget and pledged that the Commissioner for Economic Planning and Budget, Mr. Sam Egube will be available to make further clarification if necessary in the course of deliberations during the re-ordering.