The Abia State government might not borrow as much as the N400 billion loan projected to fund the 2024 budget, following new strategies being put in place to engender exponential growth of the state’s internally generated revenue (IGR).
Governor Alex Otti dropped the hint over the weekend as he charged heads of the various ministries, departments and agencies(MDs) to deploy effective strategies that would yield good results for the state’s economy.
He reasoned that with the expected significant increase in IGR, the weight of the expected loan portfolio would be reduced.
The governor stressed the need to devise new strategies for revenue generation at a follow-up retreat in Government House during which MDA heads and their teams presented strategies to enhance IGR and make Abia fiscally viable.
He stated that he was expecting a positive change in the revenue profile of the state such that his government would not have the need to finance its 2024 budget with loans.
He said: “If we do what we should do and we do them right, then there is no reason why the over N400 billion that is supposed to be raised as loans (to finance the 2024 budget) should not reduce to the barest minimum.
“So, we expect a situation and a scenario where Internally Generated Revenue would spike up and take over our provisions for loans.”
The Abia chief executive regretted the dysfunctional fiscal policy where states are compelled to go the federal government cap-in-hand for the monthly allocation of funds.
According to him, in other climes, especially in developed economies, governments generate income to fund their expenditures, adding that the idea of federal allocation “is a misnomer”.
Abia Budget: We May Borrow Less Than Projected N400bn
