largely due to external pressure that have become internal pressure, arising from the coronavirus pandemic.
For example, the actions that we would be taking on health, are same actions. It is just that now we must accelerate it because we did not think of COVID-19 when the budget was being planned. As you are aware, the story of COVID-19 started in Wuhan, China. So, the combined effect of all of these was that the Nigerian economy slowed down. Our revenue has dropped and our Gross Domestic Product would also shrink.
Our recurrent expenditure was at 80 per cent target, but our capital expenditure, which has to do with projects largely was at 41 per cent of expectation. That was so largely because the first quarter is a little bit slower. Of course if the revenue drops by 24 per cent and the expenditure drops by 21 per cent, it means it is being covered by an increase in deficit from nine per cent, to 11 per cent. So, we need to adapt going forward. The coronavirus itself is not well understood by scientists.But to move forward, three things were clear to us. Firstly, we needed to maintain a very strong pandemic response.
If you look at the Lagos State 2020 budget, you will see that the revenue is N1.1 trillion.That is broken down largely into federal transfer of about N185 billion and Internally Generated Revenue of N886 billion. However, our IGR did drop because of the headwinds and first quarter federal transfers dropped. Now, the expenditure, on the recurrent side we had almost 80 per cent, but on the capital side it was only about 41 per cent achievement in the drop.The GDP is what affects us a lot in Lagos. When you look at the correlation between GDP and unemployment, you are then able to put your finger on how GDP affects unemployment.
So, you have to keep people on their jobs. Even if you send them away, you will still need to be sending palliatives to them wherever they are. We are aggressive in our health response. We felt we needed to support business and the idea was to use the Lagos State Employment Trust Fund to do some support.
So, in our area of response, we are going to protect Lagos State food supply. So, we are going to be looking at things around our food production. We are also going to look at how to take care of our vulnerable.
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