Fg Spends 70% of Revenue Inflow on Recurrent Expenditure

NEITIMinister of Finance, Zainab Ahmed
  • Fg Spends 70% of Revenue Inflow on Recurrent Expenditure

The Federal Government has said the Buhari administration is spending 70 percent of the total revenue inflow into the Consolidated Revenue Fund account on recurrent expenditure.

Mrs Zainab Ahmed, Minister of Finance, stated during a presentation at a retreat on the Integrated Personnel and Payroll Information System.

The Consolidate Revenue Fund is the account where all government revenues are paid.

The retreat, which was organised by the office of the Accountant-General of the Federation, had as its theme, “The role of Ministries, Departments and Agencies in the implementation of IPPIS and its effect on workers condition of service and government revenue.”

She said, “The IPPIS was introduced by the Federal Government in 2007 with a view to attaining transparency, accuracy and curtailing avoidable excesses in personnel costs.

“The payroll module has led to over N250bn being saved through the identification of ghost workers.

“Although the payroll platform was first introduced as a result of the urgent need to curtail ghost workers’ syndrome, it should, however, be noted that the personnel information is the basis for payrolling.”

She said, “As part of the efforts of the present administration to enhance transparency and accountability in the management of public funds, the Federal Ministry of Finance is also implementing other initiatives aimed at ensuring efficient management of the cost of governance especially the recurrent expenditure of yearly budgets.

“The Economic Recovery and Growth Plan, a reform initiative of the Federal Government, which aims at strengthening governance, accountability, reducing corruption and delivering services more effectively also plays an important role in the continued implementation of the IPPIS policy.

“It is expected that these reform initiatives will reduce the cost of governance. Presently, about 70 per cent of the monthly revenue inflow to the Consolidated Revenue Fund is being spent on recurrent expenditure; this trend will not free the much-needed resources for improving our standard of living.

“The Federal Government is, however, determined to make life easier for the citizens despite the global economic challenges.”

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya

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