Most State governments in Nigeria today need to deliver democratic dividends such as infrastructure, quality education, healthcare and other social services to their citizens, however, ground reality is that revenue sources do not match the challenges on ground as state governments battles with dwindling monthly allocation from the federation account, coupled with low or non-existing tax revenue generated internally and scarcity of alternative sources of revenue.
However, to meet the aspirations of the people of their states, Governors through different forums are creatively devising avenues to increase internally generated revenue and reduce their state’s reliance on federal allocation. This dire situation has made most states resort to different financial engineering e.g. bond market and tax reforms to generate the much-needed revenue to fund infrastructure and welfare projects, etc. but despite all these, revenue generated still falls short of what is required to transform most states in Nigeria into a modern state and to meet the millennium development goals.
The question bothering most state chief executive is “do we increase the tax burden on our citizen to fund our projects, resort to borrowing, curtail spending and do what we can with the little resources that we have or creatively devise other means of generating revenue ”. These questions are yet to be answered!.
State Welfare Lottery – A Guaranteed & fun-way of Revenue Generation for Infrastructure & Social Development.
A state welfare lottery is a state sponsored organization that manages lottery and lots draw games of chance in which people buy tickets and prizes are given to those whose numbers.
The purpose of a state welfare lottery is to raise fund for social welfare programs such as education, environment, healthcare, infrastructures etc.
Most federal, state and local jurisdictions worldwide are creating their own national and state lotteries to increase internally generated revenue, and lottery revenues are becoming a leading funder of social development and welfare programs, and helping all federal and states government in US and Europe to plug holes in their budget deficits.
State Governments in Nigeria should also setup welfare lotteries primarily as a means of generating non-tax revenues. Moreover lottery revenues are often a means by which to generate revenues without raising taxes and are frequently set-aside for particular public purposes, such as education, aid to the elderly, conservation, transportation and economic development.
Some Key Facts About Welfare Lotteries Worldwide.
• Federal, State and local governmental authorities and their licensees in approximately 200 jurisdictions worldwide operate lotteries.
• Worldwide lottery ticket sales in fiscal year 2008 were approximately over $200 billion.
• In fiscal year 2004, lottery sales in the United States were approximately over $50 billion.
• UK national Lottery has spent over $36 billion on welfare related project from 1998 – to-date.
• Sri-Lanka is planning to build an airport from lottery revenue.
• Many states in the United States are currently relying on lottery revenue to fund key social welfare projects and plug budget deficits, with each state generating average revenue of $4 billion from its welfare lottery.
• Georgia Lottery in 11 years has total sales of $21 billion and transferred more than $7.8 billion to the state’s education fund.
• In fiscal year 2009, China Welfare Lottery sales were over $10 billion and it’s expected to grow at 31% annually.
• Over $20 billion has been spent so far for social and charitable causes by the Chinese welfare lottery, financing over 150,000 social welfare projects that have benefited millions of people.
• The Georgia Lottery was able to realize its one-year sales projection in five months and paid its start up line of credit within two weeks.
How will a Welfare Lottery Benefit Your State?
The main reason for a State Welfare Lottery worldwide is to increase the states internally generated revenue without increasing the tax burden on the citizenry, and in most jurisdiction worldwide about forty percent of lottery revenue is spent on “good causes” that impacts the citizenry directly, the following are the example of “good causes” that has benefited from lottery revenue:
• Education (grants to public schools, scholarships to indigent students, research, public libraries etc.).
• Infrastructure (Roads and public transportations).
• Health Care (Primary health institutions, medical supplies, drugs etc.).
• Charities (Orphanages, Old people’s home etc.).
• Recreation, parks and conservation.
• Emergency funds (disaster funds).
Furthermore, a state welfare lottery will provide the following social, economic and financial benefits to your state:
• Estimated revenue of between NGN5 – NGN10 billion within 1 year.
• Estimate of between NGN3 – NGN7 billion to be raised for good causes and social welfare programs within 1 year per state.
• Creation of an average of 5000 new jobs in your state, helping to reduce the state’s unemployment rate.
• Increase in state per capital consumption, hence contributing to state’s economic growth.
• Lottery revenue can greatly help increase the states standard of living.
• The welfare lottery can become a unifying factor for the citizenry just like football.
• Creates confidence and credibility in government due to frequent and continuous payouts.
• Serves as indirect form of taxation, without an additional tax burden on the citizenry.
However, to meet the aspirations of the people of their states, Governors through different forums are creatively devising avenues to increase internally generated revenue and reduce their state’s reliance on federal allocation. This dire situation has made most states resort to different financial engineering e.g. bond market and tax reforms to generate the much-needed revenue to fund infrastructure and welfare projects, etc. but despite all these, revenue generated still falls short of what is required to transform most states in Nigeria into a modern state and to meet the millennium development goals.
The question bothering most state chief executive is “do we increase the tax burden on our citizen to fund our projects, resort to borrowing, curtail spending and do what we can with the little resources that we have or creatively devise other means of generating revenue ”. These questions are yet to be answered!.
State Welfare Lottery – A Guaranteed & fun-way of Revenue Generation for Infrastructure & Social Development.
A state welfare lottery is a state sponsored organization that manages lottery and lots draw games of chance in which people buy tickets and prizes are given to those whose numbers.
The purpose of a state welfare lottery is to raise fund for social welfare programs such as education, environment, healthcare, infrastructures etc.
Most federal, state and local jurisdictions worldwide are creating their own national and state lotteries to increase internally generated revenue, and lottery revenues are becoming a leading funder of social development and welfare programs, and helping all federal and states government in US and Europe to plug holes in their budget deficits.
State Governments in Nigeria should also setup welfare lotteries primarily as a means of generating non-tax revenues. Moreover lottery revenues are often a means by which to generate revenues without raising taxes and are frequently set-aside for particular public purposes, such as education, aid to the elderly, conservation, transportation and economic development.
Some Key Facts About Welfare Lotteries Worldwide.
• Federal, State and local governmental authorities and their licensees in approximately 200 jurisdictions worldwide operate lotteries.
• Worldwide lottery ticket sales in fiscal year 2008 were approximately over $200 billion.
• In fiscal year 2004, lottery sales in the United States were approximately over $50 billion.
• UK national Lottery has spent over $36 billion on welfare related project from 1998 – to-date.
• Sri-Lanka is planning to build an airport from lottery revenue.
• Many states in the United States are currently relying on lottery revenue to fund key social welfare projects and plug budget deficits, with each state generating average revenue of $4 billion from its welfare lottery.
• Georgia Lottery in 11 years has total sales of $21 billion and transferred more than $7.8 billion to the state’s education fund.
• In fiscal year 2009, China Welfare Lottery sales were over $10 billion and it’s expected to grow at 31% annually.
• Over $20 billion has been spent so far for social and charitable causes by the Chinese welfare lottery, financing over 150,000 social welfare projects that have benefited millions of people.
• The Georgia Lottery was able to realize its one-year sales projection in five months and paid its start up line of credit within two weeks.
How will a Welfare Lottery Benefit Your State?
The main reason for a State Welfare Lottery worldwide is to increase the states internally generated revenue without increasing the tax burden on the citizenry, and in most jurisdiction worldwide about forty percent of lottery revenue is spent on “good causes” that impacts the citizenry directly, the following are the example of “good causes” that has benefited from lottery revenue:
• Education (grants to public schools, scholarships to indigent students, research, public libraries etc.).
• Infrastructure (Roads and public transportations).
• Health Care (Primary health institutions, medical supplies, drugs etc.).
• Charities (Orphanages, Old people’s home etc.).
• Recreation, parks and conservation.
• Emergency funds (disaster funds).
Furthermore, a state welfare lottery will provide the following social, economic and financial benefits to your state:
• Estimated revenue of between NGN5 – NGN10 billion within 1 year.
• Estimate of between NGN3 – NGN7 billion to be raised for good causes and social welfare programs within 1 year per state.
• Creation of an average of 5000 new jobs in your state, helping to reduce the state’s unemployment rate.
• Increase in state per capital consumption, hence contributing to state’s economic growth.
• Lottery revenue can greatly help increase the states standard of living.
• The welfare lottery can become a unifying factor for the citizenry just like football.
• Creates confidence and credibility in government due to frequent and continuous payouts.
• Serves as indirect form of taxation, without an additional tax burden on the citizenry.
No comments:
Post a Comment