January 04, 2016 – Governor Akinwunmi Ambode of Lagos State today signed the 2016 appropriation into law, stressing that that the budget will be driven by Internal Generated Revenue(IGR) following dwindling revenue from the Federal Government occasioned by fall in oil prices.
He appealed to residents of the state to cooperate with the state government through prompt payment of taxes.
The budget is made up of N662.588 billion, which is 26 percent higher than budgets of 2014 and 2015 respectively.
According to the governor, estimated revenue for year 2016 is N554.873 billion while the balance of N119.714 billion will come through deficit financing.
Also speaking, Commissioner for Finance, Mr. Mustapha Akinkumi said all establishments are expected to file their annual returns within the first 90 days of each year and called on all to comply to avoid any confrontation with the state.
“The Y2016 budget of N662.588bn will enable our government focus on the present challenges of security, traffic gridlock resolution including physical and social infrastructural developments which have thrown up new challenges quite different from our past experience”.
The Governor thanked the House of Assembly for speedily ensuring the passage of the bill which he presented to the House on December 17 and passed on December 31, saying it was no mean feat considering the long hours spent and meticulous scrutiny provided by the House Committee on Appropriation.
While alluding to the fact that the falling crude oil prices has sprung up economic challenges as well as affected the Federal Allocations, he said the State’s budget will be driven by Internally Generated Revenue (IGR).
He, however, urged tax payers to fulfill their civic obligations, promising that no stone will be left unturned in delivering value for every Kobo spent.
“I will commend this Budget to all Lagosians and enjoin them to continue collaborating with us in building the Lagos of our dreams”, he said.
Giving a breakdown of the 2016 budget, tagged “The Peoples Budget”, the Commissioner for Economic Planning and Budget, Mr. Akinyemi Ashade said it will go a long way to promote massive investments in Security, Transport/Traffic management, Physical and Social Infrastructural development in addition to enhancing job creation/opportunities.
He said the 2016 budget is 26 percent higher than the budgets of 2014 and 2015 respectively, with an estimated total revenue of N542.873bn with the balance of N119.714bn expected to be funded through a combination of internal and external loans included World Bank DPO 3 loan which could not be accessed in 2015.
He said the Lagos Internal Revenue Service is expected to generate N300billion equivalent to 78 percent of the total IGR, however adding that while the state government does not intend to introduce new taxes, efforts will be made towards bringing more citizens into the tax net especially the informal sector as well as through the adoption of an automated process to block leakages.
According to Ashade, the Y2016 budget was carefully prepared taking into consideration recent developments in the Global and National Economy Spheres, adding that although the State Government adopted the National Crude Oil projection of $38 per barrel, the budget will be largely driven by IGR made up of taxes, rates and levies.
