Lagos targets N1.2trn revenue in 2022
The Lagos State Government has said its 2022 budget size of N1.758trillion would be funded from a total revenue estimate of N1.237trillion, comprising of Total Internally Generated revenue (TIGR) of N980.654bn; capital receipts of N142.743bn and federal transfer of N256.268bn. Lawmakers in the State House of Assembly had on December 29, 2021 passed an appropriation […]
The Lagos State Government has said its 2022 budget size of N1.758trillion would be funded from a total revenue estimate of N1.237trillion, comprising of Total Internally Generated revenue (TIGR) of N980.654bn; capital receipts of N142.743bn and federal transfer of N256.268bn.
Lawmakers in the State House of Assembly had on December 29, 2021 passed an appropriation bill of N1.758trn for 2022, which was signed into law by Governor Babajide Sanwo-Olu on December 31, 2021.
Presenting analysis of the budget to newsmen in Lagos at the weekend, Commissioner for Economic Planning and Budget, Mr. Sam Egube explained that 73.5percent (N599,04bn) of the projected TIGR is expected to be contributed by Lagos Internal Revenue Service (LIRS), while about 19.2prcent (N156.65bn) is expected to be generated by other MDAs of government.
He disclosed that the State plans to achieve this by expanding the tax net with the deployment of technology, economic intelligence, through data gathering and analysis amongst other initiatives.
The deficit of N521.275bn according to is projected to be funded by a combination of internal, external loans and bond issuance including, external loan, N39.599bn; internal loans, N346.861bn and bond issuance, N134.815bn.
Defending the deficit funding requirement, Egube stated that the N521.275bn, which at 21percent of debt service to total revenue, is within the fiscal sustainability benchmarks of 40percent.
The total expenditure of N1.758Trillion budgeted for 2022 is broken down into: Recurrent expenditure (debt inclusive), N591.281bn and Capital expenditure, N1.167trn; resulting in a Capital to Recurrent ratio of 66:34, which is in favor of Capital expenditure.