Sanwo-Olu would borrow N350 billion to finance the budget for 2023

The shocking N350 billion in debt that Lagos State Governor Babajide Sanwo-Olu plans to take out to pay for the 2023 budget has been made public

The information was disclosed on Thursday after the governor requested permission from the State House of Assembly for a budget totaling N1.69 trillion for the fiscal year 2023. Monetize your Facebook

The shortfall in the budget will be covered through borrowing, with a cap of N350 billion.

According to the Debt Management Office (DMO), Lagos' domestic debt as of June 2022 is N797,305,312,602.53 and its international debt is 1.27 billion US Dollars (N555.828bn).

This estimated that the state's overall debt profile was at N1.35 trillion.

The governor claimed that the 2023 budget, which was dubbed the "Budget of Continuity," had a total revenue of N1,342,670,649,640 and deficit financing of N350,000,000,000.

The budget is made up of N234,235,000,000 in total federal transfers and N1,108,435,649,640 in internal revenue (IGR).

The budget's recurrent expenses total N759,958,569,792, according to Sanwo-Olu, and they are made up of N403,653,328,479 for total overhead costs, N247,295,312,088 for total personnel costs, and N109,009,929,224 for recurring debt service.

The total overhead cost of N403,653,328,479 is divided into three categories: dedicated, N88,194,786,596, and N221,957,283,661.

The 2023 budget has a Capital Expenditure of N932,712,190,102, comprising capital expenditure, N670,134,079,150 and Repayment, N262,578,110,952.

“The budget size is made up of recurrent expenditure of N759,958,569,792 (45%) and capital expenditure of N932,712,190,102 (55%).The deficit financing shall consist of external and internal loans and bonds which are well within our fiscal sustainability parameters,” Sanwo-Olu said.

Economic Affairs has the largest budget, at N339,482,825,430, or 20.06 percent of the whole budget. General Public Service came in second with N308,363,331,313, or 18.22 percent of the total budget. Health came in second with N67,358,643,068 and Education came in third with N153,445,318,140 (9.07%).

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