The Lagos state government is targeting N73.836billion monthly as Internally Generated Revenue, IGR in 2020 as part of funding for the year’s budget which stands at N1.168trillion. The budget is tagged: ‘Budget of Awakening’
The total revenue the state expects to generate internally for the year is N886.041bn, other revenue projection to fund the budget includes capital receipts N232.29bn and Federal transfers N184.988bn.
The total revenue estimate amounts to N1.071tr, and the deficit of N97.53b the government said would be financed by a combination of external and internal loans within the state’s fiscal sustainability benchmarks, assuring that the state was still below the benchmark for borrowing.
These figures were rolled out yesterday by the commissioner for economic planning and budget, Mr. Sam Egube at a press briefing on detailed analysis of year 2020 budget which held at Bagauda Kaltho Press Centre, Secretariat, Alausa, Ikeja.
Egube disclosed that the state government hopes to achieve the IGR target through expanding the tax net through the deployment of technology and other initiatives, which includes massive investments in technology and other facilities to improve the efficiency in operations of all revenue generating agencies.
He added that about N500bn would be raised by Lagos State Internal Revenue Service, LIRS, “We believe that there are huge revenue generating opportunities in the informal sector, including real estates, transportation for which Lagos State is known for.”
The state earmarked N711.031bn for Capital Expenditure and N457.529bn for Recurrent Expenditure, making it 61:39 per cent ratio in favour of Capital Expenditure.
Education sector has the highest allocation of N136.100bn, which is N70.40bn higher than Y2019 provision of N65.693b.
It is followed by Roads and Other infrastructure with a budgetary provision of N117.248bn and Health with N111.775bn.
Others are: Science and Technolgy N10.629bn, Environment N66.586bn, Tourism N7.481bn, Sports Development N7.740bn, Housing and Community Amenities N48.559bn, Agriculture and Food Security N4.840bn.
Also, Commerce and Industry got N3.926bn, Wealth Creation and Employment N8.403bn, Women Affairs N2.920bn, Youth and Social Development N3.716bn and Security and Governance N39.265bn.
The commissioner said the objectives of the budget is to: Attract private sector investments by creating an enabling environment; Aggressively develop, upgrade and maintain Infrastructure; Invest in human capital development, i.e. education and healthcare; Facilitate sustainable social investment and enterprise.
And also to: Improve capacity to collect due revenues as efficiently as possible; Improve civic engagements and participation in governance, leveraging technology; Build impactful partnerships with the Federal Government, other States and Local governments, development partners and civil society; Improve the quality of the environment and our public spaces generally.
While assuring that the administration will leave no stone unturned in ensuring the full implementation of the budget, he however appealed to citizens of the state to fulfil their civic responsibility, “such as pay their taxes as and when due in order to ensure the optimal performance of this budget”.
Egube said the budget was the result of widely held consultations across the three senatorial districts, in addition to taking memoranda and feedback from stakeholders meeting hosted by Honorable Members of the state House of Assembly within their respective constituencies.
“To drive the execution of the 2020 Budget, this administration will deploy a digitally enabled Performance Management System which is in line with our commitment to transparency and accountability in the management of public finances.
“This budget has taken into consideration the present economic realities in the World, Nation and Lagos State in particular, as well as the optimism for improvement in our revenue collections.
Promising that the Y2020 budget will most importantly promote massive investments in Traffic management and Transportation, Health and Environment, Education and Technology, Making Lagos a 21st Century Economy, Entertainment, Tourism, Security and Governance.
Also present at the briefing were other members of the state exco and the body of permanent secretaries.