Lagos State Governor Akinwunmi Ambode has signed the N812.998 billion budget into law.
At the Lagos House, Ikeja, yesterday, the governor said the economy would bounce back
The budget represents N150.41billion increase from last year’s budget of N662.588billion.
Capital expenditure is estimated at N507.816billion and Recurrent Expenditure N305.182billion.
The governor said the budget would consolidate on the modest milestones recorded, adding that focus will be on infrastructure, economic, social/ security and sustainable environment.
His words: “We are optimistic on the recovery of our economy this year. We are encouraged by the budget performance of last year, which stood at 78 per cent.
“Our government is committed to prudent financial management and equitable allocation of resources for the general good and will ensure proper fiscal discipline in the implementation of this Appropriation Law.”
He appealed for residents’ cooperation through prompt tax payment to ensure successful implementation of the budget.
“We encourage all tax payers to continue in this spirit and also take advantage of available multi-pay channels in fulfilling their civic obligations. Do not pay to touts or illegal channels. Make sure your tax payments count.”
Commissioner for Finance, Economic Planning and Budget Akinyemi Ashade said total revenue was estimated at N642.848billion with a deficit financing of N170.151billion.
He explained that N476.309 billion representing 74 per cent of the total revenue will be generated internally; N166.539 billion representing 26 per cent is expected from federal transfer, including the 13 per cent derivation.
Ashade said the State Inland Revenue Service (LIRS) is expected to generate N360billion equivalent to 75 per cent of the total internal generated revenue.
He added that N170.151billion deficit will be funded through a N100billion bond issuance programme and a combination of internal and external loans.
“We intend to scale up the current two per cent revenue GDP ratio to five percent in 2017 and also bring in more people from the informal sector into the tax net as well as adoption of an automated single billing system.
“We shall maintain zero tolerance to incidence of under declaration of income by tax payers in accordance with relevance laws.”
On sectoral breakdown, Economic Affairs has the lion share with N296.717 billion representing 36.50 per cent. Social Protection has the lowest estimate of N6.180 billion representing 0.76 per cent.
Others include General Public Service N207.155billion representing 25.48 per cent; Public Order N39.722 billion; Environment N56.569 billion; Housing and Community Amenities N50.344 billion; Health N51.447 billion; Recreation, Culture and Religion N12.419billion and Education N92.445billion.