The Federal Government has called for a reduction in revenue
allocations to the federal and state governments, adding that there is need to
increase the local governments’ share of the allocation.
The Secretary to the Government of the Federation, Boss
Mustapha, who was represented by the Permanent Secretary, Political and
Economic Affairs, Andrew Adejoh, said this at the town hall on a new revenue
formula organised by the Revenue Mobilisation Allocation and Fiscal Commission
in Abuja on Tuesday.
According to him, in line with the current vertical revenue
allocation formula, the Federal Government gets 52.68 per cent, state
governments get 26.72 per cent, local governments get 20.30 per cent,
while 13 per cent goes for the
derivation formula.
It was proposed that FG should get 50.65 per cent; state
governments, 25.62 per cent; while the local governments should get 23.73 per
cent.
According to the SGF, the new formula will be in line with
the levels of responsibilities assigned to each tier of government, according
to the 1999 Constitution.
He said, “All over the world, revenue and resource
allocation have always been a function of the level of responsibilities
attached to the different components or tiers of government. It is therefore
important that this Current exercise rests squarely on the 1999 Constitution
(as Amended).
“It is, thus, very clear that for us to have an endearing
vertical review of the present revenue allocation formula, we must first agree
on the responsibilities to be carried out by all the tiers of Government.
“The present vertical
Revenue Allocation Formula is: Federal Government 52.68 per cent; State
Governments 26.72 per cent; Local Governments 20.60 per cent and Derivation
Formula 13 per cent,” he said.
He further stated that the Federal Government wanted to
increase the visibility of sub-national level responsibilities in addressing
health and insecurity issues.
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