Ogun State Governor, Senator Ibikunle Amosun, yesterday said the biting economic hardship across the country may force the Federal Government to write off the bailout to some states of the federation.
Amosun also declared that government at all levels needed to restructure their expenditure profile judging by the dwindling revenue occasioned by plummeting crude oil price.
He spoke at the Treasury Board Meeting for 2016 budget organised by the state Ministry of Budget and Planning in Abeokuta, where he hinted about austere budgeting for the next fiscal year in the state. Amosun spoke against the backdrop of Thursday’s resolution by governors of the 36 states of the federation to ask the Federal Government for more assistance.
According to him, the Federal Government is already considering writing off the bailout fund recently disbursed to some states as part of measures to assist them.
He explained that the current financial crisis in the country was so deep that many state governments have been incapacitated in paying minimum wage to workers.
Amosun said writing off the debt became imperative since more states are already clamouring for fresh bailout. He said several states were not economically viable and as such may not be able to cope with the conditions for repayment of the bailout fund. Flanked by the state Deputy Governor, Chief (Mrs.) Yetunde Onanuga, and Commissioner for Budget and Planning, Ms Adenrele Adesina, the governor charged civil and public officials to be prudent, especially in the execution of government projects.
He said ministries, departments and agencies must block leakages and widen the tax net to shore up the state’s revenue base in order to meet the electioneering campaign promises of the present administration.
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