Lagos State governor, Akinwunmi Ambode has appealed to Lagosians, particularly the informal sector to pay their taxes as at when due.
Ambode, while signing the N662.588b Y2016 Appropriation bill into law, said that tax remittance is a civic duty and most critical at this time, if the government must meet her budgetary projections and fulfill her part of the social contract.
The governor, at the brief ceremony held at the State Banquet Hall, Lagos House Ikeja, said that the budget would be driven by Internally Generated Revenue (IGR) in the light of falling crude oil prices and attendant drop in federal allocation and economic challenges.
He, however, urged tax payers to fulfill their civic obligations, promising that no stone would 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.
Ambode promised that the budget would be faithfully implemented in line with the determination of his administration to make Lagos work for all, irrespective of age, gender, tribe or status.
He said: “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.
The Commissioner for Economic Planning and Budget, Akinyemi Ashade, explained that the budget size of N662.588b would be funded from a total revenue estimate of N542.874b with the balance of N119.714b to be funded through a combination of internal and external loans included World Bank DPO 3 loan which could not be accessed in 2015.
Ashade said the Lagos Internal Revenue Service is expected to generate N300b equivalent to 78 per cent of the total IGR, however adding that while the state government does not intend to introduce new taxes, efforts would 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.
Chairman of the Lagos Inland Revenue Service (LIRS), Olufolarin Ogunsanwo confirmed that no fewer than 5 million people are currently in the tax net, though the projection is in the neighbourhood of 8.5 million.
Ogunsanwo added that the 3.5 milion gap was due to the 70 per cent of the informal sector that were not yet complying to the income tax rules.
Giving a breakdown of the 2016 budget, tagged “The Peoples Budget”, Ashade explained that the budget would 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 underlying principles of the budget include planned and systematic maintenance of existing/new infrastructural facilities, completion of ongoing projects, payment of outstanding liabilities, sustenance of the goals of job creation, poverty eradication and wealth creation in addition to efficient service delivery to Lagosians.
Ashade said N89b would be spent on construction, rehabilitation and maintenance of roads and public buildings, while N48.9billion will be expended on various Transportation initiatives including the completion of the Blue Rail Line and expansion of BRT Corridors (Mile 12-Ojota).
The Commissioner also said that N86billion will be spent on the education sector, which according to him, will cover the state government flagship programmes including A-Meal-a-Day initiative to be partly sponsored by the Federal Government, Ibile tablets for Secondary Schools as well as the development of the E-Curriculum initiative.
He gave the expenditure breakdown of other sectors to include, Health (N46.9bn) Agriculture and Food Security (N2bn), Tourism (N2.2bn), Commerce and Industry (N6.2bn), Environment (N27bn), Pensions (N6.5bn), Science and Technology (N9.6bn), Water (N17.6bn), Housing (N25.3bn), Sports Development (N2.3billion), among others.
