Abstract
Infrastructural provisions and availability of resources to meet such needs has been the major point of concern to government in all states of the federation. In recent time Lagos State has been witnessing infrastructural deficit and this is actually affecting the standard of living of the citizens. Since the advent of civilian government in the state, internally generated revenue has been on the increase, yet the state is still witnessing a lot of infrastructural deficits. This study examined the contributions of personal income tax to infrastructural development in Lagos state to determine the effect that personal income tax has on infrastructural provisions of the state. The study adopted <i>ex-post facto</i> research design. The study covered Personal Income Tax and infrastructures development of Lagos State from 1997 to 2018. Secondary data were obtained from Lagos State Internal Revenue Services (LIRS), Lagos State Ministry of budget and planning and Lagos State Ministry of Finance. Data were analyzed using descriptive and inferential statistics. The study found that Personal Income Tax has significant effect on infrastructural development of the state. Given infrastructural provisions; EDH, EDR. On EDH, With <i>Adjusted R<sup>2</sup></i>= 0.150, F-stat =3.678, and also at 5% significance level [β = 0.380; P – value = 0.008]. On EDR, Adjusted R<sup>2</sup> = 0.315, F-stat = 3.915, Prob (F-stat) = 0.028), at 5% significance level [β = 0.352; P – value = 0.154]. The study shows that more government income from PIT was spent on housing infrastructures over other infrastructural provisions.
Highlights
IntroductionInfrastructure is the basic physical and organizational structure needed for the operation of a society or enterprise, or the services and facilities necessary for an organization to function [35]
The variables considered for this study includes Expenditure of Government on Housing (EDH), Expenditure of Government on Road (EDRand Personal Income Tax (PIT)
The summary statistics in the Table shows that Lagos State spent more on housing This is reflected in the fact that about N24.4b was ever recorded as government spending on housing
Summary
Infrastructure is the basic physical and organizational structure needed for the operation of a society or enterprise, or the services and facilities necessary for an organization to function [35]. It is a set of interconnected structural elements such as roads, bridges, water supply, electricity, education, good health care, telecommunications, that provides framework for supporting an entire structure of development Ahmed, [3]. These structural elements provide commodities and services that are essential for enabling, sustaining, or enhancing societal living conditions Ebuh, Ezike, & Shhittie, [12]
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