Emmanuel Awari, Jalingo
Taraba State Government in its efforts towards achieve it’s objective of the 2023 budget, has stepped up its attempts to mobilise revenue to reduce over dependence on the Federal Account Allocation Committee, FAAC.
The commissioner for Budget and Planning, Solomon Elisha stated this on Tuesday while briefing journalists in Jalingo, the state capital, on the budget under the administration of Gov. Ishaku for 2023, during which he debunked the allegation that the State is indebted to the tune of over N200 billion, adding that the allegation emanated from opposition parties.
Elisha said the 2023 budget of the State was based on macroeconomic assumptions, which includes the exchange rate of one dollar to N435.57, international oil price benchmark of $70 per barrel, a national inflation rate of 17.16% and GDP growth of 3.75% among others.
He noted that the timely passage of the 2023 appropriation bill into law is vital for the completion of the government’s ongoing critical projects and transition to a new administration in the state.
The budget, according to him will be achieved through improved revenue mobilisation by blocking leakages and charting new revenue sources.
He said the state would henceforth be in charge of the Value Added Tax (VAT) and not the federal government as measure to boost independent revenue to finance the 2023 budget.
“With this development, the Taraba State government has joined Rivers and Lagos States in the collection of VAT, which was hitherto being collected by the Federal Government through the Federal Inland Revenue Service (FIRS).
Elisha who announced that the State was able to generate N11.030 billion in 2022, the highest ever internally generated revenue, noted that the State is projected to generate N19.388 billion by end of 2023.
“Yes, the State government is going to be in charge of collecting VAT to finance the 2023 budget of N173.234 bn, the sum of N73.371bn is expected to come from the share of statutory allocation, while N19.388bn is the projected independent revenue,l including VAT.
“Similarly, N39.920bn is expected to come from aides and grants, while another N39.954 will come from capital development fund receipts – he said.
According to him, the budget was prepared in accordance with the National Chart of Accounts (NCoA) noted that the budget provision will be used to complete important on-going projects and provide the framework for the new administration to build on.
He said that as part of measures to get more money for capital projects, the State government has put in place measures to improve on revenue generation through blocking of leakages, emphasizing on new sources, creating fiscal space for infrastructural development and strick monitoring and evaluation measures.
“All these measures are part of deliberate government attempts in the mobilization of revenue to reduce dependence on federal allocation in the financing of the State projects – he added.