The Lagos Internal Revenue Service (LIRS) said it will expand the tax net through the deployment of technology to generate N500 billion toward the implementation of the 2020 budget.
The state Commissioner for Economic Planning and Budget, Mr Sam Egube said this will involve massive investments in 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 estates, transportation, markets, for which Lagos State is known for,” the commissioner said Egube who spoke while giving journalists a ‘Detailed Analysis of Year 2020 Budget’ of Lagos State in Ikeja on Tuesday.
Egube said that the budget of N1.16 trillion would be funded from a total revenue estimate of N1.07 trillion.
”A significant percentage of the projected Total Internally Generated Revenue (TIGR) of N500 billion is expected to be contributed by LIRS.
”We shall achieve this by expanding the tax net through the deployment of technology, amongst other initiatives, which include massive investments in 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 estates, transportation, markets, for which Lagos State is known for,” the commissioner said.
Egube said that included in the Capital Receipt was a balance of N175 billion brought forward that comprised of proceeds from Year 2019 Loan and Bond issuance of N100 billion and N75 billion respectively.
He said the balance gave the administration a significant head-start in the implementation of major capital projects this year.
The commissioner said that the deficit of N97.53 billion was projected to be funded by a combination of internal and external loans.
He said that government had maintained a conservative posture in its projection for Federal Transfers/Receipts in view of the production challenges within the oil sector.
Egube said that the 2020 budget of N1.16 trillion was made up of N711.03 billion for Capital Expenditure and N457.52 billion for Recurrent Expenditure, giving a 61:39 Capital to Recurrent expenditure.
Under recurrent expenditure, the Total Personnel Costs would account for N167.90 billion; the Total Overhead Costs N249.93 billion, while the Debt Charges would be N39.69 billion.
”The recurrent expenditure is moderated at a level of 39 per cent of the Total Expenditure, out of which the personnel cost is N167 billion, representing 14.4 per cent of the Total Expenditure, which is well within the fiscal sustainability ratio of 25 per cent.
”This budgetary provision for personnel cost takes into consideration, the new minimum wage.
”Capital expenditure accounts for 61 per cent of the total budget size. This is a demonstration of the administration’s commitment to massive infrastructure renewal and development toward actualising a ‘Greater Lagos’.
”I want to assure you that this administration will leave no stone unturned in ensuring the full implementation of this budget.
”May I also use this opportunity to make a passionate appeal to all the citizens of Lagos to fulfil their civic responsibilities; such as pay their taxes as and when due in order to ensure the optimal performance of this budget,” the commissioner said.
Newsmen report that the Education sector has the highest allocation of N136.10 billion, which is N70.40 billion higher than year 2019 provision of N65.69 billion.
It was followed by Roads and Other infrastructure with a budgetary provision of N117.24 billion and Health sector with N111.77 billion.
Others are, Science and Technology N10.62 billion, Environment N66.58 billion, Tourism N7.48 billion, Sports Development N7.74 billion, Housing and Community Amenities N48.55 billion, Agriculture and Food Security N4.84 billion.
Also, Commerce and Industry got N3.92 billion, Wealth Creation and Employment N8.40 billion, Women Affairs N2.92 billion, Youth and Social Development N3.71 billion and Security and Governance N39.26 billion.
Newsmen also reports that the year 2020 proposed Appropriation Bill, tagged: ”Budget of Awakening” was on Friday, Nov. 8, 2019, presented to the Lagos State House of Assembly by Gov. Babajide Sanwo-Olu for consideration and assent.
The bill was subsequently passed on Monday, Dec. 30, 2019 by the state House of Assembly and it was signed into law by Sanwo-Olu on Dec. 31, 2019.