- Capital Expenditure Gulps N93bn
The Lagos State Government, on Tuesday, disclosed that its internally generated revenue for the first quarter of 2018 stood at N103.476 billion, as against N96.7 billion recorded in the previous year, thereby, accounting for 81 per cent of the total revenue of N141 billion generated in the quarter.
Commissioner for Economic Planning and Budget, Mr. Segun Banjo, at the annual Ministerial Press Briefing to mark the third year in office of Governor Ambode administration at the Bagauda Kaltho Press Centre, Alausa, said the records, so far, show that the performance of the State’s 2018 budget of N1.046 trillion was heading in the right direction.
Giving a breakdown of the figures, the Commissioner said the budget performance for the first quarter has a pro-rata size of N261.530 billion and in absolute term, it had performed N163.491 billion, compared with N120.206 billion reported for the same period in 2017.
In terms of revenue generation, Banjo said that the sum of N141 billion (63 per cent) was generated as Total Revenue against N124.141 billion (77 per cent) achieved in 2017, adding that this year’s first quarter performance was N17.816 billion higher than the previous year’s performance in absolute terms.
He said out of the total revenue of N141 billion, the State internally generated N103.476 billion, representing 57 per cent, as against N96.7 billion in the previous year, thereby accounting for 73 per cent of the total revenue for the current fiscal year.
The Commissioner explained further that the Lagos Internal Revenue Service (LIRS) generated N84.1 billion in the first quarter, which accounted for 81 per cent of the total revenue generated, a feat, he attributed to proper planning and research by the government.
Banjo however noted that the N84 billion generated by LIRS was excluding revenue from Land Use Charge (LUC), noting that it was from the strict application of taxes from Pay As You Earn (PAYE), withholding taxes, direct assessment and other taxes.
Besides, he said that Federal transfers for the first quarter Y2018 contributed N38.481 billion (87 per cent) compared to a performance of N27.364 billion out of which Statutory Allocation contributed N13.868 billion and N24.4 billion from VAT for the same period in 2017.
“Under Capital Expenditure, Quarter one performance stood at N93 billion (53 per cent) as against N46.7 billion (37 per cent) as at the same period in Y2017. As at the end of Q1 2018, the Capital: Recurrent ratio closed at 57:43 as against 39:61 recorded same time in Y2017.
“This is a pointer to the fact that all efforts geared towards tighter control of overhead is beginning to yield fruits even though more needs to be done in this area,” he said.
He said the State Government would do everything within its powers to sustain the budget performance in the second quarter, adding that the ultimate goal was to meet the target of a Capital: Recurrent expenditure ratio of 67:33 throughout the year.