Business
Lagos plans to widen tax net to fund 2020 budget
In other to raise more money to finance the N1.17 trillion 2020 budget, the Lagos state commissioner for Economic Planning and Budget, Sam Egube, says the state plans to expand its tax net to enable its IGR to meet up with the expected financial support needed to fund the budget.
The state government currently has a total revenue estimate of N1.07 trillion to fund the budget. This consists of Internally Generated Revenue (IGR) of N886.04 billion and N184.99 billion from the federal government.
While the deficit is expected to be financed from external loans of N34.5 billion and domestic loans of N63 billion, the state plans to widen its tax net to enable its IGR to meet up with the expected financial support needed to fund the budget.
The method being applied by the state tax administrator to expand its tax base is the deployment of technology and other facilities. This will also be employed to improve the efficiency in operations of all revenue-generating agencies.
“We believe that there are huge revenue-generating opportunities in the informal sector…,” the commissioner said in a Punch report.
Note that total revenue of N775.23 billion, out of which N606.29 billion was expected from internal generation, N168.94 billion from federal transfers and N77.09 billion from deficit financing, was projected in 2019.
As expected, the budget for each sector is different, and according to Egube, the 2020 Budget was concluded upon based on consultations with stakeholders. Below are the budgets for some sectors.
The education sector got the highest allocation of N136.1 billion. It was N70.41 billion higher than that of the 2019 budget and would cater to the reconstruction of 300 schools, provision of furniture for both primary and secondary schools across the state and equipment for science laboratories.
Roads and infrastructure got the second-highest allocation of N117.248 billion against the N31.673 billion expended in 2019.
According to the commissioner, the increase would address the zero-pothole strategy and create link roads within the metropolis to solve the challenges of traffic congestion. On the development of infrastructure along the coastline, we have a provision of N11.29 billion that has been earmarked to enhance our coastal infrastructure in order to curb ocean surge and protect lives and properties.
Health, environment, and housing got the third, fourth and fifth-highest allocations of N111.775 billion, N66.586 billion and N48.559 billion respectively.
Traffic management got an allocation of N44.51 billion as against the N17.59 billion budgeted in 2019.
Egube said full implementation of the budget would be the priority of the government.