Govt tasks states on fiscal prudence
From Inem Akpan-Nsoh, Uyo
THE Federal Government yesterday urged states in the country to block all sources of wastage to check the impact of the global financial crisis.
The Minister of State for Finance, Remi Babalola, made the appeal in Uyo while presenting his keynote address at the first Akwa Ibom State Revenue Summit.
According to him, states should review their capital projects and focus more on infrastructure. "It is no rocket science that at a time like this, product resources management is a sin qua non. Let us re-prioritise our capital projects, scale down nice-to-have edifices and focus on infrastructure enhancement," he asserted.
He stressed that Nigeria should learn lessons from the success stories of countries like South Korea, Thailand, Taiwan and Malaysia, adding that proper policy choices, provision of necessary social and economic infrastructure, would launch states on the path of economic development.
The minister observed that the revenue summit organised by the Akwa Ibom State government was aimed at diversifying the revenue base of the state, adding that this would help the state have sufficient funds to meet the rapid growing demands of the state public service.
He advised Akwa Ibom people not to misconstrue the tax summit to mean an avenue of increasing taxes or other levies, rather they should see it as a way of bringing in those who have been enjoying government services but have not been paying taxes.
"Most of us here will appreciate that the core objective of the government of Akwa Ibom State in organising this event is to promote voluntary observance of tax requirement," he said, describing such compliance as tax responsibility.
The minister advised that taxpayers should see themselves as investors in the provision of educated workforce, good infrastructure and security, adding that they were partners in the achievement of whatever good thing that was attributed to the government.
Earlier, the state governor, Godswill Akpabio, noted that the recent fall in the federation's allocation to states to about 84 per cent had made it necessary for states to look inward to make ends meet.
According to him, those companies and corporate bodies or individuals that have been evading taxes in the state would be sanctioned as they would not be allowed to do any business with government any longer.
Akpabio said it was his administration's determination to sustain the current level of infrastructural development that had prompted government's need to create awareness in the minds of Akwa Ibom people too see the need to pay their taxes, especially those in the informal sector of the state economy.
