• Friday, March 29, 2024
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Lagos targets N886.041bn IGR in budgeted N1.169trn for 2020

Why you’re appointed, Sanwo-Olu to new commissioners, Perm Secs  

Lagos State government is targeting total internally generated revenue (TIRS) of N886.041 billion in the budgeted N1.169 trillion for 2020. The performance of the budgeted N1.169 trillion is expected to be well above the record 80 percent it achieved as at the fourth quarter of 2019. The current administration which has put several measures in place said it would leave no stone unturned in ensuring the full implementation of this budget.

Babajide Sanwo-Olu, the state governor, had on December 31, 2019 signed into law the 2020 budget after the State House of Assembly passed it on December 30.

The approved 2020 budget is made up of N711.033 billion for capital expenditure and N457.529 billion for recurrent expenditure, giving a 61:39 capital-to-recurrent expenditure ratio strongly in favour of capital expenditure.

Sam Egube, commissioner for economic planning and budget, disclosed this in Lagos on Tuesday during the state’s analysis of the budget tagged “Budget of Awakening”. The total revenue is estimated at N1.071 trillion, while the deficit is N97.53 billion, “which will be financed by a combination of external and internal loans well within our fiscal sustainability benchmarks”, Egube said.

Egube gave the analysis of the 2020 budget alongside Rabiu Olowo, finance commissioner; Gbenga Omotosho, information commissioner, among other cabinet members.

The year 2020 budget reflects the Sanwo-Olu administration’s goals to enhance development across all sectors of the economy in line with the THEMES development agenda, he said.

Lagos State remains the nation’s economic hub and one of the leading economies in Africa. The objectives of the state’s 2020 budget is to attract private sector investments by creating an enabling environment; aggressively develop, upgrade and maintain infrastructure; invest in human capital development –that is education and healthcare; facilitate sustainable social investment and enterprise; and improve capacity to collect due revenues as efficiently as possible.

The state also hopes to 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; and improve the quality of the environment and the public spaces generally.

The total budget size is N1.16 trillion and will be funded from a total revenue estimate of N1.071 trillion, comprising the following: total internally generated revenue (TIGR): N886.041 billion; capital receipts (N232.29 billion); and federal transfer (N184.988 billion).

A significant percentage of the projected 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,” Egube said.

“We believe that there are huge revenue generating opportunities in the informal sector, including real estate, transportation, etc which Lagos State is known for,” he said.

Included in the capital receipt, he said, is a brought-forward balance of N175 billion that comprises proceeds from year 2019 loan and bond issuance of N100 billion & N75 billion, respectively. He said the balance gives the administration a significant head-start in the implementation of major capital projects this year.

“The deficit of N97.533 billion is projected to be funded by a combination of internal and external loans. We have maintained a conservative posture in our projection for federal transfers/receipts in view of the production challenges within the oil sector,” Egube said.

The recurrent expenditure is broken down as follows: total personnel costs (N167.907 billion); total overhead costs (N249.930 billion), and debt charges (N39.692 billion).

The recurrent expenditure is moderated at a level of 39 percent of the total expenditure, out of which the personnel cost is N167 billion representing 14.4 percent of the total expenditure, which is well within the fiscal sustainability ratio of 25 percent. This budgetary provision for personnel cost takes into consideration the new minimum wage.

To emphasise the administration’s resolve towards enhancing infrastructure development is the proposed investments in some critical sectors, amongst others.

Roads and other infrastructure

A budgetary provision of N117.248 billion (against the sum of N31.673 billion expended by November 2019) is provided for the maintenance of roads and other infrastructure within the state.

“This increase shall address the zero-pothole strategy, create link-roads within the metropolis to resolve traffic congestion and its attendant risks,” Egube said.

“On development of infrastructure along the coastline, we have a provision of N11.288 billion that has been earmarked to enhance our coastal infrastructure in order to curb the ocean surge and protect lives and properties,” he said.

Traffic management/transportation

A total sum of N44.510 billion (against year 2019 actual of N17.590 billion) was budgeted under the transportation family for the following projects: Blue and Red rail lines; junction improvement all around the state; completion of trailer parks in the state, amongst others.

Education

The total sum of N136.100 billion was budgeted for the education sector. This figure is N70.407 billion higher than the year 2019 provision of N65.693 billion. The year 2020 provision is designed to cater for the underlisted projects/programmes, amongst others: construction/rehabilitation of schools (300 schools would be renovated in Y2020. This is the first phase of the school rehabilitation programme); provision of furniture for both primary and secondary schools, provision of equipment for science laboratories, and Eko-Excel Project to improve learning outcomes using technology in early education.

Science and technology

The sum of N10.629 billion is provisioned for building and upgrading of IT infrastructure statewide, e-GIS land automation system, single billing system and ease of tax payment, levies and other revenue enhancement initiatives. The Smart City project is targeted at deploying technology to enhance security in the state and will also enhance our revenue generating efforts. The administration will deliver a 3000km metro-broadband fibre infrastructure through a PPP initiative. The objective is to build it to 6,000km.

“We will continue to invest in the Lagos State resident registration initiative in conjunction with NIMC to gather useful data and information for planning purposes,” Egube said.

Health

A total sum of N111.775 billion (as against a total sum of N53.141 billion in Y2019) was provided for the continuous upgrading/renovation of health facilities and completion of on-going healthcare infrastructure, including Maternal and Child Care Centers (MCCs); and the health insurance scheme. This represents over 110 percent increased provision for the health sector, thereby demonstrating the administration’s determination to ensure access to health care.

Environment

A total sum of N66.586 billion was earmarked for this sector in Y2020, out of which a sum of N11.917 billion (as against Y2019 approved budget of N2.652 billion) is meant for construction/upgrading/maintenance of drainage channels (De-flooding Programmes) and procurement of specialised equipment for flood abatement purposes, while the sum of N29.343 billion has also been provided for LAWMA for waste management and collection in the state. N10.750 billion proposed for advancement of Adiyan waterworks (phase II) and rehabilitation of mini waterworks all over the state, including improvement of water pipelines and reticulation and procurement of water chemicals, has also been provisioned in the Y2020 budget.

Tourism

The sum of N7.481 billion is earmarked for the development of Heritage Centre for Leadership (Lugard House), upgrade of National Museum, Global Citizens Conference, and construction of other tourism facilities in Lagos.

Sports development

To kickstart sport at the grassroots level, the sum total of N7.740 billion has been earmarked for the completion of on-going renovation work on Mobolaji Johnson Stadium (formerly Onikan stadium), renovation of Teslim Balogun Stadium, and construction of community youth recreation centres across the state.

In addition to the above, there shall be provision of sporting facilities in schools and locations spread across local governments in the state, and development of grassroots football league in all the local government areas.

Housing and community amenities

The total allocation to the housing and community amenities is N48.559 billion. This includes an amount of N16.876 billion for the completion of on-going housing estates including infrastructure. The sum of N6.939 billion has also been provided to continue the implementation of an electronic Certificate of Occupancy and title re-certification project, and issuance of e-planning approvals.

Agriculture and food security

In order to ensure self-sustenance in staple foods and expansion programme in rice production, Agric Youth Empowerment Scheme (Agric YES), animal husbandry and root crops as well as the Lagos State collaboration with other states in the federation, a sum of N4.840 billion was approved.

Commerce and industry

The on-going development of Lekki Free Zone, Imota Light Industrial Park, Gberigbe Enterprise Zone in Ikorodu and other areas within the state will receive a boost with the appropriation of the sum of N3.926 billion.

Wealth creation and employment

The sum of N8.403 billion was earmarked in the budget to sustain the implementation of Employment Trust Fund Scheme, which has commenced disbursement of loans to beneficiaries since Y2016. Implementation of Graduate Internship Programme, creation of industrial hubs, and other wealth creation initiatives will play a great role in empowering the citizen.

IHEANYI NWACHUKWU & JOSHUA BASSEY