The 2025 Appropriation Bill of N3.005 trillion presented by Gov. Babajide Sanwo-Olu of Lagos State has scaled the second reading at the state’s House of Assembly.
The House made this known on Monday at a plenary presided by the Speaker, Mr Mudashiru Obasa, at the assembly’s complex in Ikeja.
The News Agency of Nigeria (NAN) reports that Sanwo-Olu told the lawmakers at the budget presentation on Thursday that the budget aims to achieve a 59 per cent capital expenditure and 41 per cent recurrent expenditure ratio.
The governor added that this is with deficit financing to be sourced through external and internal loans and bonds.
Obasa, after an extensive debate on the bill, committed it to a joint committee on appropriation and finance for review with a mandate to report back in one month.
Earlier, the Chairman, House Committee on Budget and Economic Planning, Mr Sa’ad Olumoh, provided an overview of the proposed spending with a breakdown of items in the estimate.
Olumoh, however, raised concerns over the projection of N408 billion deficit financing through loan in the budget.
He said: “Loans are good when used for the actual purposes and we have to be cautious about it.
“We need to have a sustainable and pragmatic way of financing our budget so that we don’t rely solely on loans.
“So, I would suggest that we look at a realistic budget and ways to finance it using alternatives like the Public Private Partnership models.
“I also want to implore my colleagues that for the purpose of the 2025 budget, we need to properly scrutinise it to prevent wastage.”
The chairman commended the government for its intentions as stipulated in the budget estimate.
Speaking, the Deputy Majority Leader, Mr Adedamola Kasumu (Ikeja II), called for a careful review of the budget to enable comparative analysis and feasibility.
Also, Mr Gbolahan Yishawu (Eti-Osa II) noted the absence of allocations for electricity infrastructure and climate change initiatives while suggesting a five-year retrospective analysis of deficit funding.
His colleague, Mr Femi Saheed (Kosofe II), stressed the importance of linking borrowing to critical infrastructure like electricity while ensuring revenue efficiency and addressing potential financial leakages.
On his part, Mr Desmond Elliot (Surulere I) highlighted the omission of food security measures in the proposal while urging the inclusion of initiatives to meet citizens’ needs. (NAN)
