The federal government is to introduce a monthly revenue transparency dashboards in its move to ensure transparency of income and expenditure across the three tiers of government.The Minister of State for Finance, Dr. Doris Uzoka-Anite, disclosed this while addressing the Federation Account Allocation Committee (FAAC) in Abuja, at the weekend.
She said that the measure was necessary in view of the huge funds that would be available to the three levels of government occasioned by the recent Executive Order, freeing more oil revenues, as well as, the large tax revenues expected from the implementation of the new Tax Act.With improved finances, Dr. Uzoka-Anite urged productive capital deployment, adding, states and federal MDAs are encouraged to: prioritize capital expenditure over recurrent expansion; Invest in infrastructure, agriculture, energy, and productive sectors; and avoid unsustainable wage or consumption spikes.
She added that a production-to-remittance reconciliation reporting and a clear reporting of incremental Tax Reforms and EO-driven inflows would be introduced equally.Dr. Uzoka-Anite charged the various tiers of government to use the opportunity of the improved revenue to reduce debt burdens, clear arrears responsibly and invest in growth-enhancing sectors.She also said that excess liquidity that may arise from huge one-off payments occasioned by the recent Executive Order on oil revenue could be kept in a Stabilisation Fund and released in such a way to support macroeconomic stability.
The Minister of the Chairman of the FAAC told State Commissioners of Finance, “We convene today at a pivotal moment in the fiscal management of our Federation. The revenue outlook is changing. Structural reforms recently introduced by the Federal Government are expected to materially strengthen Federation revenues.“The newly implemented tax reform measures are broadening the tax base, improving compliance, and enhancing administrative efficiency.This is welcome news.“However, improved revenue performance requires improved fiscal coordination. As Chairman of FAAC, I must emphasize that our responsibility extends beyond distribution.
It includes ensuring that distribution supports macroeconomic stability and long term economic growth.“Experience shows that when revenues rise sharply and are distributed fully and immediately, large liquidity injections can increase inflationary pressures, complicate monetary management, and reduce the real purchasing power of allocations.
