The Federal Government, Saturday, said it is finalizing a conditional Budget Support Facility to provide financial relief to StateÂ Governments based on the states meeting a set of stringent fiscalÂ conditions.The Finance Ministry, in a statement in Abuja, said the facility isÂ aimed at providing support to the states to help them overcome theirÂ financial challenges.
The Ministry of Finance said the states would only be able to accessÂ the facility if they meet a stringent 22-point reform agenda calledÂ the Fiscal Sustainability Plan (FSP), that was approved by state
governments, the National Executive Council, last month.
According to the Finance Ministry, the FSP encompasses a framework ofÂ reform measures including the requirement for the states to publishÂ audited financial statements and budgets, biometric and Bank
Verification Number (BVN) payroll review exercises to sanitise payrollÂ costs, as well as limits on recurrent expenditure levels.
Other reforms, the Ministry said, will require states to set and meetÂ targets to enhance Internally Generated Revenue (IGR), theÂ establishment of Efficiency Units to reduce overhead costs,Â privatisation of State Owned Enterprises, domestication of the FiscalÂ Responsibility Act and limitations on securing further bank loans.
Culled from VANGUARD NEWSPAPER