The Lagos State Government on Tuesday disclosed that it generated N103.476 billion as internally generated revenue in the first quarter of this year, representing 81 per cent of the total revenue of N141billion generated in the quarter.
The figure is also about N6.7 billion higher that the N96.7 billion IGR raked in during the corresponding quarter of last year.
Briefing journalists during the press briefing to mark the third year in office of Governor Ambode’s administration, the Commissioner for Economic Planning and Budget, Mr. Segun Banjo, explained that the performance of the state’s 2018 budget of N1.046 trillion was achieving the desired objectives
The Commissioner said that the budget performance for the first quarter had a pro-rata size of N261.530 billion and in absolute terms, it had performed N163.491 billion compared to the N120.206 billion reported for the same period in 2017.
On generated revenue, Banjo said that the sum of N141 billion or 63 per cent was generated as total revenue against N124.141billion, representing 77 per cent, achieved in 2017, adding that this year’s first quarter performance was N17.816 billion higher than the previous year’s in absolute terms.
The Commissioner explained further that the Lagos Internal Revenue Service (LIRS) generated N84.1bilion in the first quarter, which accounted for 81 per cent of the total revenue generated, a feat, he attributed to proper planning and research by the government.
He explained: “What we have said now is that in the first quarter which we just concluded of 2018, LIRS generated a total of N84 billion compared to the N74billion that was generated in 2017. Due to the research and the planning done, LIRS has been able to improve their performance and we are very glad about it.”
The Commissioner, however, noted that the N84 billion generated by LIRS excluded the Land Use Charge (LUC revenue, pointing out that the revenue accrued mainly from Pay As You Earn (PAYE), withholding taxes (WHT), direct assessment and other taxes.
In addition, Banjo said that Federal transfers for the first quarter 2018 contributed N38.481billion (87 per cent) compared to a performance of N27.364 billion out of which Statutory Allocation contributed N13.868 billion and N24.4 billion from VAT for the same period in 2017.
The Commissioner clarified: “Under Capital Expenditure, Quarter 1 performance stood at N93billion (53 per cent) as against N46.7billion (37 per cent) as at the same period in Y2017. As at the end of Q1 2018, the Capital: Recurrent ratio closed at 57:43 as against 39:61 recorded same time in Y2017.
“This is a pointer to the fact that all efforts geared towards tighter control of overhead is beginning to yield fruits even though more needs to be done in this area,” he added.
He assured that the state government would do everything to sustain the budget performance in the second quarter, adding that the ultimate goal is to achieve the Capital-Recurrent expenditure ratio of 67:33 in the fiscal year.
On whether or not the downward review of the Land Use Charge Law will affect the implementation of the 2018 budget negatively, particularly the capital budget, the Commissioner allayed fears, saying that government has adopted necessary strategies to ensure prompt delivery of critical projects this year.
“Definitely we have made a projection but because this is a very responsive government, we have decided to give rebates and when you give rebates, automatically the revenue will go down, the expectation might not be there in terms of what we intended in the first instance.
“But we can assure you that whatever we lose from the rebate we would get it somewhere else because we would continue to up our game,” the commissioner said.