Tuesday, 10 May 2016

Lagos Generates N101.69bn In First Quarter


Amid economic downturn rocking the country, Lagos State Government yesterday said it has generated a total revenue of N101.69 billion in the first quarter of year 2016 budget with a surplus of N4.85 billion as against an expected deficit of N29.92billion.

The state Commissioner for Economic Planning and Budget, Akinyemi Ashade who disclosed this at a ministerial press briefing in Lagos said the performance was N4.40 billion more in absolute term compared to year 2015 and was achieved despite the dwindling statutory allocations from the Federal Government.

According to Ashade, the Capital Expenditure at the end of the first quarter of 2016 performed at N48.88bn (51%) which was better than N15.08bn (24%) in the same period of year 2015, while the recurrent expenditure is N47.96bn (70%) as against N57.50bn (95%) in year 2015.

“This level of performance was achieved despite the diminishing statutory allocations from the federation account. It is our belief that with the implementation of multiple revenue collection channels and broadening of our revenue base, we should achieve tremendous progress in our revenue drive,” he said.

The commissioner added that the total Internally Generated Revenue (IGR) in the first quarter of 2016 was N76.06bn (72%) and 75% of total revenue, as against N67.21bn (74% of the estimate for first quarter of 2015) and 69% of total revenue in the corresponding period for last year.

“Lagos Internal Revenue Service (LIRS) revenue for first quarter of 2016 was N67.25bn (90% of estimate for the quarter) representing 88% of the total IGR and 66.12% of the total revenue, compared to N60.58bn (87% of the estimate for first quarter of 2015), representing 90% of total IGR and 62% of total revenue in year2015.

This performance was N6.67bn more in absolute terms compared to corresponding period in year 2015 and due largely to more participatory structural and systemic re-engineering.

“Over the course of the first quarter of year 2016, Federal transfers contributed N25.64bn (83% of the estimate for the quarter) and accounted for 25.21% of total revenue. Further breakdown showed that statutory allocations contributed N7.48bn while Value Added Tax (VAT) contributed N18.16bn.

“Capital Expenditure in the first quarter of 2016 performed at N48.88bn (51%); better than N15.08bn (24%) in the first quarter of 2015. As at the end of the first quarter of year 2016, the ratio of capital expenditures to recurrent expenditures closed at 50:50, better than a ratio of 21:79 recorded for the same period in 2015, but short of the ratio of 58:42 projected for year 2016,” he explained.

He said capital expenditure performance was expected to significantly improve in the second quarter of 2016 based on government’s projections and expectations of revenue inflows, adding that the recurrent expenditure for the first quarters of year 2016 was N47.96bn (70%) as against N57.50bn (95%) in the same period in 2015.

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