Follow Us on Google
Joe Effiong, Uyo
Akwa Ibom State Government is to benefit from the increase in the Value Added Tax (VAT) by raking in an estimated N20 billion this year.
This is higher by N2 billion than that of 2019 which was estimated at N18 billion and which less than 60 percent was actually realised when VAT was pegged at 5 percent as against the current 7.5 percent.
Commissioner for Finance, Linus Nkan, who disclosed this while analysing the state’s 2020 budget, yesterday, also said the internally generated revenue of the state would equally grow from N44 billion budgeted last year to N55.56 billion for 2020, just as derivation revenue is expected to contribute N255 billion as against N250 billion budgeted for last year.
Despite the seemingly increase in those revenue sub-sectors, including the statutory revenue which moved from N50 billion for last year to N52 billion for 2020, the budget size for 2020, tagged: Budget for Industrialisation Poverty Alleviation Phase II, has been decreased from N672.9 billion for 2019 to N597.7 billion.
Just as the revenue profile is expected to increase, expenditure sector will also increase, jacking up the personnel cost from N55 billion in 2019 to N61 billion; overhead cost moves from N42 billion to N50 billion while consolidated fund charges increases from N225 billion to N228 billion.
