29th November, 2016
*LIRS to rake N360 billion from tax
*N164.9 billion from Federal Allocation
*Estimated revenue: N642.849 billion
Roads, education and transportation top the list of allocation from Governor Akinwunmi Ambode’s 2017 budget of N812.99 billion.
In the budget presented to the House of Assembly on Tuesday, road infrastructure got the highest allocation with N138.249 billion, followed by education, which got N92.400bn and health, N57.290bn.
Also, Transportation got N51.376bn in the budget, while housing received N50.290bn. Others are: Water, N18.181bn; Tourism, N20.247bn; Agriculture and Food Security, N4.795bn; Environment, N38.129bn; Sports Development, N9.457bn; Commerce and Industry, N6.177bn; Wealth and Employment Creation, N6.250 billion; Women Affairs, N2.193bn; and Social Development, N2.698bn; Governance, N11.098bn; Science and Technology, N11.006bn and Security, Law and Order, N31.246bn.
Giving the breakdown at the Bagauda Kaltho Press Centre, Alausa in Ikeja, Lagos, Southwest Nigeria on Tuesday, Akinyemi Ashade, Commissioner, Ministry of Finance/ Economic Planning and Budget said in the preparation of the 2017 budget, recent developments around the world had been put into consideration, especially in the global and national economy spheres.
“We have maintained a conservative approach in estimating our Federal Allocation due to falling oil prices that was about $41.98 per barrel at the time we finalized the budget; the State expects an increase in Federal allocation through 13% derivation from Oil and Gas in 2017, however, the budget would largely be driven by Internally Generated Revenue (IGR) made up of taxes, rates, levies etc.
“The 2017 budget will continue to promote massive investments in security, Infrastructure, transport/traffic management, physical and social infrastructural development, environment, health, housing, tourism, power, e- governance, education, agriculture and skill acquisition,” he said.
More so, the 2017 budget is predicated on a Capital/Recurrent Ratio of 63:37 as against 58:42 in 2016 while there will be aggressive growth in IGR through taxes and non-tax revenue to N30bn per month.
According to Ashade, the budget size of N812.998bn would be funded from a total revenue estimate ofN642.849 billion with the balance of N170.150 billion to be funded through a N100bn Bond Issuance Programme and a combination of internal and external loans.
He said the Total Internally Generated Revenue (TIGR) of the budget is approximately N477.942bn (representing 74%) of the Total Revenue, while the remaining N164.907bn (representing 26%) is expected from Federal Transfers, including 13% derivation.
“The Lagos Internal Revenue Service (LIRS) is expected to generate a tidy sum of N360bn, equivalent to 75% of the Total Internally Generated Revenue. We intended to improve on the current 2% revenue to GDP ratio by achieving 5% in 2017 and also bringing more people into the tax net as well as adoption of an automated single billing system.
“The 2017 Proposed Capital Expenditure is proposed at N512.464bn and Recurrent Expenditure is N300.535bn, making up a total expenditure of N812.998billion, this provides an aggregate Capital to Recurrent ratio of 63:37,” he explained.
On the N138.249b earmarked for road infrastructure, the fund will be used to complete the Abule-Egba overhead bridge, Ajah bridge, continued massive road rehabilitation in partnership with the Local Governments/Local Council Development Areas, Murtala Mohammed International Airport Road from Oshodi, Agric-Isawo-Owutu-Arepo Road in Ikorodu,Igbe-Igbogbo Phase II- Bola Tinubu Way in Ikorodu, Ijegun Imore Phase II, Amuwo in Ojo axis,Oke-Oso-Araga-Poka in Epe, Epe-Poka-Majoda in Epe and Pen Cinema flyovers, among others.
The N51.376bn budgeted for transportation has been earmarked for the Blue Rail Line, advancement of 10-Lane Lagos-Badagry Expressway, construction of jetties and terminals (especially at Epe and Marina with shoreline protection) and procurement of ferries to improve water transportation and encourage tourism.
“The government is also committed to the expansion of BRT Lanes in Lagos and we shall pay due attention to Oshodi – Abule Egba BRT Corridor. In the course of the 2017 Financial Year, we shall carry out fundamental reforms on all our modes of transportation – Roads, Water and the Walkways. In this wise, a Public Transport Infrastructure Bond will be issued in the course of the year,” Ashade said.
On housing, Ashade said the N50.290bn investment would allow government to focus on affordable housing units through rent-to-own schemes (Badagry, Lagoon View Topo-Idale and Imota), while the total sum of N15.291bn out of the allocation is committed to completion of on-going housing estates (Sangotedo, Odo Nasa Agowa, Ikorodu Ibeshe).
On health, N57.290bn earmarked is for the continuous upgrading/renovation of health facilities and completion of on-going healthcare infrastructure, including MCCs, upgrading / renovation of primary healthcare centres, completion / equipping of Drug Quality Control Laboratory (DQCL), prevention of blindness / special health projects, construction of specialist hospital, construction of Medical Park, among others.
On education, the N92.4bn earmarked has been set aside for continued rehabilitation / upgrading of public school buildings/facilities, continued provision of furniture for secondary schools, construction of new schools, schools improvement plan for secondary schools, provision of equipment for science laboratories, among others.