The former governor of Ogun State, Ibikunle Amosun, has urged governments, especially at the sub-national level, to shift from funding annual budgets through borrowings but commit to growing internally generated revenue, IGR.
Speaking in Abuja on Tuesday at the 26th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria, CITN, he said that developing a strong revenue base at the state levels is pertinent at this time of economic challenge.
He also said using internal and external loans to fund national and sub-national budgets carries the attendant costs of high debt servicing, which, he says, takes up a substantial portion of revenue.
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Mr. Amosun noted that the N8.25 trillion budgeted for debt servicing constitutes a substantial 30.5 percent of the N27 trillion National budget for 2024.
He added that with strong determination, the right fiscal and monetary policies and an efficient taxation administration system, governments can grow their tax base to substantially bridge their funding gap
According to him, revenues from taxation offer the most viable way for the national and sub-national governments to not only fund their expenditure, but to also immune themselves from the shocks emanating from economic volatility beyond their control.
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