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Lagos targets 30-35% growth in IGR to fund 2021 budget

Lagos State Commissioner for Economic Planning and Budget, Mr Sam Egube (middle) flanked by his Finance counterpart, Rabiu Olowo (left) and that of Information, Gbenga Omotoso (right). Photo: Omolara Omosanya

The Lagos State government has promised to continue to use data and intelligence to unravel revenue opportunities and block leakages.

The Commissioner for Economic Planning and Budget, Mr Sam Egube renewed the promise in Alausa, Ikeja during a breakdown of this year’s One-point-one-six- four trillion naira budget with newsmen.

The major funding of the budget is expected to come from Internally Generated Revenue with a projected growth of 30-35 per cent as well as capital receipts and federal transfer while the deficit will be supplemented with internal and external loans.

Mr Egube explained that 723. 817 billion naira will be generated internally to fund the budget, with 512 billion naira projected to come from taxation, while
175 billion naira is being expected from Federal allocations in view of the production challenges within the Oil Sector, and the deficit of ₦192.494bn will be sourced from internal and external loans.

The Commissioner appealed to residents to cooperate with the State government to ensure the robust performance of the budget

Mr Egube said: “A significant percentage of the projected TIGR of N512bn is expected to be contributed by LIRS. We shall achieve this by expanding the tax net by simplifying the tax process, improving our transaction taxes and the appropriate use of technology in addition to improving the work environment, training and tools of our tax administration personnel, we believe that there are huge revenue-generating opportunities in the state, including real estates, transportation sectors and our markets generally etc. May I also use this opportunity to make a passionate appeal to all the residents 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”

A breakdown of the budget christened, the budget of “Rekindled Hope” indicates that Economic activities will gulp the largest chunk with over three hundred and thirty-two billion naira, while about One hundred and Forty-four billion naira will be expended on General
Public Services.

15 billion naira has been earmarked for the Rebuild Lagos Project and a trust fund to regenerate infrastructure destroyed in the aftermath of the EndSARS protests.

One hundred and thirty-seven point nine,-four,-eight billion naira will be devoted to the Health sector, while seventy-two point nine billion naira is budgeted for Transportation and Traffic Management, seventy-one billion naira is expected to be spent on Agriculture and Food Security and over thirty-three point nine billion naira will be expended in the Housing Sector for the completion of ongoing projects, construction of new ones and community amenities.

Giving a breakdown of the expected internal revenue generation and loans to fund the budget, the Commissioner for Finance, Dr Rabiu Olowo said the taxation net would be expanded as only 3million out of the State’s 22 million estimated population are active taxpayers and assured Lagosians that Lagos debt profile is sustainable.

His counterpart in the Ministry of Transportation, Dr Frederic Oladehinde announced that the Lekki Epe Expressway, the Blue and Red Rail line, as well as inner street roads and traffic improvement in the junctions across, would receive maximum attention.

On her part, the Commissioner for Education, Mrs Fọláṣadé Adefisayo said more teachers would be employed especially for schools in riverine areas, while special focus would be paid to the maintenance of Infrastructure.

The Special Adviser to the Governor on Works and Infrastructure, Mrs Aramide Adeyoye assured Lagos residents that provisions have been made for the upgrade of many of the public infrastructure which they had been complaining about.

Omolara Omosanya.

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