As the World Bank-assisted States Fiscal, Transparency Accountability and Sustainability (SFTAS) Programme designed to enthrone fiscal discipline at the sub-national level gradually approaches a terminal point, it has become increasingly necessary to sustain the ideals, Ndubuisi Francis reports
Between 2015 and 2016, the consequences of decades-long financial profligacy characterised by careless fiscal management at the sub-national level crystallised into a near-fiscal crisis for most states of the federation.
No fewer than 27 states could not as much as pay the salaries and emoluments of their workers.
This culminated in the federal government doling out a series of bailout funds for them to pay salaries arrears and stay afloat.
However, aware of the danger that sub-national fiscal risks posed to the federal government, it dawned on the government at the centre that fiscal coordination of states was imperative.
This spurred the federal…
Source: Thisday Newspaper
