Yielding to the clamour for state governments across the federation to be more proactive about revenue generation, away from the ever-dwindling monthly handout from the centre, the Kaduna state government has revealed that it is now ready to shift focus from federal allocations.
During the recent presentation of its budget, the North-Western state revealed that it plans on moving focus to Internally Generated Revenue to fund budget, especially from tax. From 2015, the state highlights that strategic efforts have been directed to grow its tax yearly return base from ₦13 billion in 2015 to today’s ₦57 billion annual returns.
The new focus for the El-Rufai governed state was announced by its Commissioner for Budget and Planning, Mohammed Abdullahi during a ₦233 billion 2022 budget proposal defence.
To corroborate its readiness to be dependent on revenue generation, the state currently holds the record of 31 percent dependence on federal allocations.
What the state government is saying,
”In the next few years, Kaduna should provide for infrastructure and other obligations with its own money so that whatever comes from the federal allocation will be an addition,” the commissioner said.
“In 2015 when this government came in, the highest that had been achieved was ₦13 billion annually and we are very happy today that we are at ₦57 billion because of the continued support of the State House of Assembly. The first law that was passed was the consolidated law, which was what opened the doors for rising internal revenue generation by the state,” he said.
“The state government relies only on about 31 percent (budget) of federal allocation while some other states rely on 70-80 percent from federal allocation.”
“What the government decided when it came in 2015 was that we must be able to fund our salaries from the money we realise within Kaduna, which means that whatever happens from the federal government we will be able to take care of the salaries and other state’s obligations,” he said.
“There are states who are owing five to eight months salaries because of reliance on federal allocations.
“It is important that we note this and understand that we will bring more and more bills to the House and more initiatives to the state, and understand that bringing revenue to the state is the most important thing to do.