Citizens' Guide to 2020 BUDGET Lagos state Government Lagos State Budget Objectives of the 2020 Budget The 1999 Constitution, section 121 stipulates The objectives of Y2020 budget include: that prior to the commencement of each financial year; the Governor require to present Attract private sector investments to the State an annual Budget (Appropriation Bill) of the economy by creating an enabling environment; State to the House of Assembly for enactment Aggressively develop, upgrade and maintain our into law. Infrastructure; Thereafter, the Governor assents to it, then Invest in human capital development, i.e. becomes an Appropriation Law. This therefore, education and healthcare; puts the responsibility of the Budget between the Executive and Legislative arm of the Facilitate sustainable social investment and Government. enterprise; Improve capacity to collect due revenues as Y2020 Budget (''Budget of Awakening'') was efficiently as possible; presented to the Lagos State House of Assembly on Friday, 8 November, Y2019 and was passed Improve civic participation in governance, and into Law on 30th December, 2019. Mr. Governor, automate public services and engagement; Babajide Sanwoolu gave his assent to it on 31st December, 2019. Build impactful partnerships with the Federal Government, other States, development partners and civil society; and Improve the quality of the environment and our public spaces generally. 01 Lagos Demographics Population Growth Population density Projected Population 7,390 27,281,339 3.20% person / km² Total Mass (Land & water) Land Water 3,577.28 km² 2,797.72 km² 779.56 km² SOCIO-ECONOMIC INDICES On the average, the Daily Human Traffic Vehicular Relative Vehicular Population Density National (Lagos Mainland/ Island) is over (Y2017) 20 million 5million+ 30/km (Y2018) (Y2018) Road Count (Y2019) Power Demand Vehicular Density (2018): Btw (Lagos State) 5,000-10,000MW 9204 roads (Y2018) Power Supplied 264/km National Grid Total Length of Roads (Y2018) 750MW 9,326km IPP - 49.86MW Solid Waste Generation Water Demand Federal Roads (Y2018) (2017) 665 MGPD 510km Average Supplied: 1,656,757.00MT (Y2019) Local Govt Roads /per year 1,765.96 MGPM 5,843km Water Supplied (Y2019) 11, 819.68 MGPY 02 Budget Definition Public Sector budget is defined as a statement of resources (borrow) to pay for this additional a government's estimated revenue and spending. Money borrowed within Nigeria is expenditure for a particular period; normally a referred to as Internal Debt while from year for an annual budget and three to five years outside Nigeria is External Debt. When for a medium-term. Principal and interest are paid on the Debts, it sis referred to as Debt Service The budget size depends on the level of revenue that can be generated and spent in line with Government Policies/Programmes. Budget Components Ÿ Revenue: That is, how much money collected in a year, and how it will be collected. Major Heads of Revenue: Internally Generated Revenue, Capital Receipt and Federal Transfers Ÿ Expenditure: That is, how much money to be spent in that same year, and what to spend the money on. Major Heads of Expenditure: MDAs Expenditure (Recurrent and Capital), Debt services and Repayment Ÿ Financing/Debt Service; When the expenditure is more than the revenue earns. Government must find the financial 03 How is the Budget Prepared? Setting Policy Target Developing Monitoring Strategies & Evaluation Budget (MTBF) Process Allocation Budget of Resources Implementation (Preparation & Approval) 04 Setting Policy Target The Lagos State Government prepare the Traffic Management & Transportation, Budget in line with THEMES Agenda initiative Health & Environment, and direction for the State. The budget serve as a Education & Technology, policy tool for achieving the short, medium and Making Lagos a 21st Century Economy, long-term development goals The Initiatives Entertainment & Tourism; and describe how the government will develop the Security & Governance State through: The Linkage between Lagos State Development Plan (LSDP) and Budget Funconal Group Breakdown (9 Groups) Medium Term Medium Fiscal Issuance of Term Budget Framework Framework Call Circular State Development Medium Term MDA’s Programme Plan Sector Based Budget Strategies Breakdown Budget Bilateral Performance Managemen t Meeng Report Annual Budget 05 The Lagos State Development Plan (LSDP) – Vision and Mission Africa’s model megacity, a global economic and financial hub that is safe, secure, functional and productive Eradicate poverty and promote economic growth through infrastructural renewal and development 06 Underlying assumptions Linkages Between LSDP, MTSS, for MTEF in Lagos State PMR and Budgets. LSDP – Long Term Government Strategic Lagos Nominal GDP (Estimated) N32.15tn Thrust MTSS – Aligns Government Long Term Policies Lagos GDP and Strategies into Medium Term programs Growth Rate (Y2019) 4.13% and Projects showing priorities and costings within available resources. Inflation Rate (State Figure) (Y2020) 10.59% Subsequently monitoring and evaluation activities are initiated for the measurement of Population (Y2020) 27.28m performance (Outputs and Outcomes) which culminates in performance Management Population Report (PMR) Growth Rate 3.20% Oil Price Benchmark (Y2020 $55 Developing the Strategy through Citizens' Engagement the Medium Term Fiscal Framework (Consultative Forum) Y2020 Budget was prepared in accordance with the fiscal responsibility Act 2007. The fiscal Inputs for the Budget were obtained through framework indicates how revenue, expenditure, several consultative fora with Stakeholders borrowing and fiscal balance (deficit or surplus) (including the organised private sector, civil are planned in the next three (3) financial year society, traditional rulers and public sector) for (Medium term). Fiscal framework normally their input and buy-in which took the form of includes a revenue framework (where the open and interactive session. This made the money comes from) and an expenditure Budget process open, transparent and accessible framework (where the money is spent on). The to citizes. Medium Term Framework was prepared based on agreed underlying assumptions as follows: 07 The Budget Call Circular and Bilateral Discussion The Budget Call circular gives detail instruction During the Bilateral discussion, MEPB will on how the MDAs should prepare and submit ensure that MDAs stayed within their available their estimates within the limit of their resources and consistent with the priorities of available resources. Government. Trend Analysis of the Budget Performance All amounts in (2010-2019) NGNbn % of performance 411.571 2010 80 329.526 2011 450.775 77 347.053 491.941 2012 89 439.464 507.105 2013 85 429.745 2014 489.690 83 408.312 489.690 2015 72 350.676 662.588 2016 82 528.664 812.998 2017 82 668.929 1,046.121 2018 65 682,301 873.532 2019 81 707.154 08 2020 Budget at a Glance All amounts in 1,168.56 NGNbn Budget Size 97.53 1,071.03 Total Revenue Budget Deficit Revenue Sources Total Expenditure Total IGR 39.69 Recurrent Debt 249.93 Overhead Federal Transfers 457.52 Deficit 167.91 Personnel Cost 886.04 184.99 97.53 09 Capital/Recurrent Expenditure All amounts in NGNbn 457.52 Recurrent Expenditure 39% 1.17tn 61% Budget Size 711.03 Capital Expenditure 10 Where the Money Comes from (Funding) Internally Capital Receipt Federal Transfers Financing Generated Revenue (Nbn) (Nbn) (Nbn) (Nbn) Internally 653.75 Capital 232.29 Federal 184.99 Deficit 97.53 Generated Receipts Transfers Funding Revenue Lagos 500.00 Grants 36.06 Statutory 63.50 External 34.53 Internal Allocation Loans Revenue Services Internally 118.12 Other 21.23 Value 111.38 Internal 63.00 Generated Capital Added Loans Revenue Receipt Tax (Others) Dedicated 32.63 Balance 100.00 Extra 10.00 Revenue from Ordinary Loan Revenue Proceed Investment 3.00 Balance 75.00 13% 0.10 Income from Derivation Bond Issuance Extra - Ordinary Revenue 11 Where the Money Comes from (Funding) All amounts in NGNbn Internally Generated Revenue (Nbn) 118.12 500.00 Internally Generated Lagos Internal Revenue Services Revenue (Others) 3.00 Investment 32.63 Income Dedicated Revenue Capital Receipt 36.06 100.00 75.00 Grants Balance from Loan Proceed Balance from Bond Issuance 21.23 Other Capital Receipt Federal Transfers 63.50 111.38 Statutory Allocation Value Added Tax 10.0 Extra Ordinary Revenue 0.10 13% Derivation 12 Where the Money Goes (Expenditure) All amounts in NGNbn 525.33 Capital Expenditure 249.93 Overhead Expenditure 185.70 Repayment Debt Charges (Internal) 1,168.56 29.70 Total Expenditure 167.91 Personnel Debt Charges (External) 4.99 Debt Charges (Bond) 5.00 13 Function Group Allocation The Y2019 Budget Size by breakdown in Ÿ Percentage allocated to each of the Functional Functional Groups (9-Groups) and percentage Group reflects Government Strategic shows: priorities, sustenance of past trend and needs assessment of the citizenry All amounts in NGNbn 285.22 277.37 Economic Affairs General Public Service 94.57 66.54 136.10 Consolidated Debt Environment Education Service Accounts 37.52 41.91 Internal Loans Bond Issuance (Principal Repayment) Recreation, 111.78 48.56 10.47 Culture & Housing and 39.26 Religion Health Community Amenities Public Order 11.70 and Safety 7.57 External Social Loans Protection (Principal Repayment) 14 FUNCTION Y2020 Allocation Recurrent Capital Total % Expenditur e Expenditur e Allocation Alloc General Public 189.26 88.11 277.37 23.74 Services Public Order and 22.50 16.76 1 39.26 3.36 Safety Economic Affairs 52.05 233.18 285.22 24.41 Envir onment 25.80 40.73 66.54 5.69 Housing and 4. 64 43.92 48.56 4.16 Community Amenities Health 72.69 39.08 111.78 9.57 Recreation, Culture 5.45 5.02 10.47 0.90 and Religion Education 80.71 55.39 136.10 11.65 Social Protection 4.42 3 3.15 7.57 0.65 External Loans 11.70 11.70 1.00 (Principal Repayments) Internal Loan 37.52 37.52 3.21 (Principal Repayments) Bond Issuance 41.91 41.91 3.59 Consolidated Debt 94.57 94.57 8.09 Service Accounts TOTAL 457.53 711.03 1,168.56 100 15 Key Deliverables The critical areas of our expenditure plan for Provision of equipment for science laboratories.