Governor Akinwunmi Ambode of Lagos State on Monday assented to the 2016 Budget, saying it will be primarily driven by Internally Generated Revenue (IGR).
Ambode said this while signing into law the 2016 Appropriation Bill at the Lagos House, Alausa, Ikeja.
It was presented to him by Mr Rotimi Olowo, Chairman, Lagos State House of Assembly Committee on Economic Planning and Budget.
The News Agency of Nigeria (NAN) recalls that Ambode had presented the budget of N662.588 billion to the Assembly for consideration on Dec. 17.
“Consequently, I appeal to all tax payers to fulfil their civic obligations as we promise to leave no stone unturned in delivering value for every Kobo spent,’’ he said.
Ambode said that the budget would enable his administration focus on the present challenges of security, traffic gridlock resolution, as well as physical and social infrastructural development.
He said those challenges had thrown up new ones quite different from past experience.
According to him, the total revenue estimate for 2016 fiscal year is N542.873 billion, which shows that the balance of N119.714 billion will be funded through deficit financing.
He said the capital expenditure was N386.933 billion and recurrent expenditure of N275.655 billion with an aggregate capital to recurrent ratio of 58:42.
The governor commended the legislature for expeditious passage of the bill.
Giving the breakdown, Mr Akinyemi Ashade, the Commissioner for Economic Planning and Budget, said that Lagos state Internal Revenue Service (LIRS) was expected to generate N300 billion of the total IGR.
He said the estimated total revenue was N542.873 billion with the balance of N119.714 billion expected to be funded through a combination of internal and external loans.
This, the commissioner said would include the World Bank DPO 3 loan which could not be accessed in 2015.
Ashade said the 2016 budget was 26 per cent higher than the budgets of 2014 and 2015, respectively.
He said that the IGR was approximately N419.826 billion of the total revenue.
“We do not intend to introduce new taxes in 2016 but rather bring more citizens into the tax net especially the informal sector through the adoption of an automated process to block leakages,’’ Ashade said.
He said the underlining principles of the budget included planned and systematic maintenance of existing and new infrastructural facilities as well as completion of ongoing projects.
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