Lagos State Government said it recorded 81percent of expected revenue during the first half of the year, which is N432.6billion, amid the scourge of the COVID-19 pandemic.
The Commissioner for Budget and Economic Planning, Sam Egube, revealed this on Thursday during the 2019/2020 Annual Press Week Lecture of the Lagos State Governor’s Office Correspondents (LAGOCO).
He was represented by the Senior Special Assistant to the Lagos State Governor on Economic Matters, Mr. Lekan Balogun.
According to the Commissioner, the government has been able to re-strategise to meet with the demands of the present realities, stressed that a good government is one which has the ability to respond when crisis arise.
He said: “Lagos State economy remains the largest and arguably the fastest growing economy in Nigeria. The state’s economy was projected to grow at four per cent prior to COVID-19. However, COVID-19 has affected the possibilities of achieving such prosperous target.
“Having looked at the half of the year budget performance, it showed that despite the challenges of the COVID-19 pandemic, the total revenue recorded in performance is at 81 per cent of our initial target.”
He however, said while the state’s economy was projected to record a four per cent growth, the COVID-19 pandemic has brought in strains that demanded a contraction in the state’s budget by 21 per cent in response to constriction in economic activities.
According to him, the review of the budget was among others, necessitated by lower GDP growth, decline in demand for goods and services, and shortfall in revenue generation.
Egube said the review in the state’s budgetary plan was done to maintain a strong response to the effects of the pandemic on food, ensure job creation, economic stability and economic reforms for ease-of-doing business.
According to him, the experience of the lockdown brought the state government to the reality of the shortcomings in the state’s food storage system, which necessitated the increase of the allocation to agriculture to 2.8 billion.
Egube who stated that there is need for parsimony in government spending, stressed that with the experience of the COVID-19, the state government has created stabilisation fund at one per cent of yearly IGR to provide support during future emergencies.