La­gos plans tax ex­pan­sion to fund N1.17tn bud­get

The Punch - - FRONT PAGE - Ever­est Amae­fule and Mau­reen Ihua-maduenyi

The La­gos State Gov­ern­ment says it plans to in­crease its monthly In­ter­nally Gen­er­ated Rev­enue to fund the 2020 bud­get.

The Com­mis­sioner for Eco­nomic Plan­ning and Bud­get, Sam Egube, said this on Tues­day at the state’s bud­get break­down.

he dis­closed that the to­tal bud­get size of N1.17tn would be funded from a to­tal rev­enue es­ti­mate of N1.07tn.

The es­ti­mate is made up of IGR of N886.04bn and fed­eral trans­fer of N184.99bn.

A deficit of N97.53bn is to be fi­nanced from ex­ter­nal loans of N34.5bn and do­mes­tic loans of N63bn.

In 2019, the state pro­jected a to­tal rev­enue of N775.23bn out of which N606.29bn was ex­pected from in­ter­nal gen­er­a­tion, N168.94bn from fed­eral trans­fers and N77.09bn from deficit fi­nanc­ing.

Egube said a sig­nif­i­cant per­cent­age of the pro­jected TIGR of N500bn 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 N136.1bn.

he said it was N70.41bn 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 N31.673bn 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 N11.29bn 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 N111.775bn, N66.586bn and N48.559bn re­spec­tively.

Traf­fic man­age­ment got an al­lo­ca­tion of N44.51bn as against the N17.59bn 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.

Newspapers in English

Newspapers from Nigeria

© PressReader. All rights reserved.