Lagos Seek Expansion of Tax Coverage to fund N1.17tn budget
The Lagos State Government has said it plans to increase its monthly Internally Generated Revenue to fund the 2020 budget.
This was made known by the Commissioner for Economic Planning and Budget, Sam Egube, during state’s budget breakdown.
According to him the total budget size of N1.17 trillion would be funded from a total revenue estimate of N1.07 trillion.
The estimate is made up of IGR of N886.04 billion and federal transfer of N184.99 billion.
A deficit of N97.53 billion is to be financed from external loans of N34.5bn and domestic loans of N63 billion.
In 2019, the state projected total revenue of N775.23 billion out of which N606.29 billion was expected from internal generation, N168.94 billion from federal transfers and N77.09 billion from deficit financing.
He said a significant percentage of the projected TIGR of N500 billion would be contributed by the Lagos Inland Revenue Service through expansion of tax net.
This, he said, would be achieved through the deployment of technology and other facilities to improve the efficiency in operations of all revenue generating agencies.
“We believe that there are huge revenue generating opportunities in the informal sector including real estate and transportation which Lagos State is known for,” the commissioner said.
Egube said the 2020 budget was a result of widely held consultations across the three senatorial districts in addition to feedback from stakeholders.
Giving a sectoral analysis of the budget, the commissioner said the education sector got the highest allocation of N136.1billon.
He said it was N70.41billon higher than that of the 2019 budget and would cater for the reconstruction of 300 schools; provision of furniture for both primary and secondary schools across the state and equipment for science laboratories.
Roads and infrastructure got the second highest allocation of N117.248bn against the N31.673billon expended in 2019.
Egube said, “The increase would address the zero-pothole strategy and create link roads within the metropolis to solve challenges of traffic congestion.
“On the development of infrastructure along the coastline, we have a provision of N11.29 billon that has been earmarked to enhance our coastal infrastructure in order to curb ocean surge and protect lives and properties.”
Health, environment and housing got the third, fourth and fifth highest allocations of N111.775 billion, N66.586 billon and N48.559 billon respectively.
Traffic management got an allocation of N44.51billon as against the N17.59 billon budgeted in 2019.
Egube said it would address junction improvement throughout the state and help with the completion of trailer parks among others.
The commissioner said the state government would ensure the full implementation of the budget.
He disclosed that the performance of the 2019 budget stood at about 80 per cent by the end of the year.
Commissioner for Finance, Mr Rabiu Olowo, explained that the state’s borrowings were only committed to capital projects.
He added that as of 2019, the state’s debt ratio sustainability stood at 29 per cent and would further reduce to 25 per cent in 2021.
Commissioner for Education, Mrs Folashade Adefisayo, disclosed that in a few weeks, the state would start its home-grown school feeding programme.
According to her, the programme would not only cover pupils in primaries one to three but also those in primaries four to six.
Commissioner for Information and Strategy, Mr Gbenga Omotoso, described the budget as audacious and ambitious, adding that it would take care of all residents of the state.