FG urges States to adopt Fiscal Sustainability Plan as condition for loan

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Federal government yesterday unfolded the Fiscal Sustainability Plan, FSP, and the 36 States in the federation to implement the policy as a pre condition to attract further loan.
The FSP is a disciplined approach to managing public funds, ensuring the maximisation of revenues and the minimisation of the costs of governance.
Unfolding the policy yesterday in Abuja, Minister for Finance, Mrs. Kemi Adeosun at stakeholders’ meeting held with States’ Commissioners of Finance on the FSP said it replicates the far reaching public financial management reform programme across all tiers of government and marks a turning point in the management of State Finances.
Indicating that States have already agreed to toe the path of FSP as pre condition to benefiting from further loan from the FG, the finance minister said “By agreeing that further financial support under this guaranteed loan package, is conditional upon independently verified attainment of the 22 milestones, the State Governors are to be commended.
“They are sending a strong signal that they are indeed partners in the journey towards the recovery of the Nigerian economy and are fully prepared to pay the price for a sustainable future.”
The finance minister explained that “when fully implemented, the FSP will begin the process of guaranteeing that States take responsibility for their financial viability; pursuing the objective that Internally Generated Revenue, IGR, rather than Federal Allocation, should be their principal focus of revenue is a fundamental change in approach.
“This is in line with our objective to have a diversified and inclusive economy where every state adds value. We realise that this is not an overnight process, rather a journey, but it is a necessary one for the future of State and Local Government in Nigeria.”
She explained that at federal level, to create headroom for the urgently needed investment in infrastructure, government is pursuing a very …Read More

Source:: Nigerian Pilot