Budget NG

Enugu targets N30bn IGR to fund 2018 budget


March 3, 2018 | 8:34 am
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Enugu State government is targeting N30 billion to be generated as Internally Generated Revenue (IGR) this year.
The money would be 34 percent of the total recurrent revenue expected this financial year to finance the state N103,563,500,000 budget estimate.
Other expanded revenue base of the state is upgrading graduation ICT infrastructure to bring all revenue generating MDAs into one platform, reviewing and updating relevant laws that will support a robust and transparent revenue administration to realise the target of N2 billion a month.

The state commissioner for finance, Eucharia Uche Offor, who announced this in Enugu while giving a breakdown of the state 2018 budget, said the expected IGR of N30 billion represented an increase by 84.43 percent from the N16,266,614,000 budgeted from the same source last year.

According to the commissioner, the drive will not affect the business environment, because the increase is hinged on the restructuring of the state Internal Revenue Services, which has been fully digitalised and automated through the e-payment mechanism, the Treasury Single Account (TSA).

She said the adoption of the e-payment system has helped in plugging major avenues of revenue leakage, coupled with the state’s determination to aggressively exploit other avenues of revenue generation that has been left untapped in the years past.

The commissioner said, “The Enugu State 2018 budget titled Budget Of Sustainable Economic Growth presented on December by the state governor Ifeanyi Ugwuanyi, was predicted on the national macro – economic variables such as Annual Inflation – 12.42%, real GDP Growth – 4.8%, oil production benchmark – 2.3 million barrels per day, oil price benchmark – 45 USD, NGN:USD Exchange rate – 305 naira ”

She pointed out that the implementation of the budget would focus on improving economic growth through more investment in physical infrastructure and on the state ease of business index so as to provide enabling environment that would sustain the effort to make Enugu state a preferred destination for local and foreign investor among others.

The commissioner explained that the 2018 budget was 2.04% less than the state 2017 budget of N105,719,471,000, because the state government wanted to tailor its expectations to the realities of the current economic circumstance.
Out of the total budget of N103.56 billion, the sum of N60.72 billion, representing 58.6% of the total budget, is for recurrent expenditure. It is higher than the 2017 figure of N55.2 billion by 10%. While capital expenditure stands at N42.85 billon, representing 41.4% of the budget size lower than the 2017 figure of N50.52 billion by 15.19%.

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March 3, 2018 | 8:34 am
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