FG Provides States with £ 123.348 Billion in Grants
The federal government has allocated a total of £ 123.348 billion ($ 324.6 million) to states under the Tax Transparency and Sustainability Program (SFTAS).
Minister of Finance, Budget and National Planning Ms Zainab Shamsuna Ahmed said this in a statement signed by Mr Hasan Dodo, Director of the Ministry of Press and Public Affairs, in Abuja on Wednesday.
The minister explained that the disbursement followed the states’ achievement of the results of the just-concluded Annual Performance Assessment (APA) 2019.
Ms Ahmed advised that the allocation includes 91.048 billion N. and debt sustainability.
States received grants according to the number of achievements, with Sokoto State receiving the highest amount at ARP 6.612 billion and Kano State the lowest at ARP 1.710 billion.
“The states of Bayelsa, Imo, Rivers and Zamfara received a zero award for failing to meet eligibility criteria for 2019, which required states to publish approved annual budgets online and certified financial statements within a specific timeframe,” he said. …
He also noted that the APA results for 2019 represent a significant improvement over the APA results for 2018, when total grants of 43.416 billion shillings (US $ 120.6 million) were received from 24 eligible states, indicating a significant progress made by states in tax reform.
The minister added that “the second part of the payment is related to the new DLI response to COVID-19: the introduction of the tax incentive program for individual taxpayers and businesses by states by September 30, 2020, in which 34 states out of 36 (only Anambra and Zamfara states were unable to receive results for this new DLI totaling N 32.3 billion ($ 85 million) in grants. “
This payout round will kick off following a recent announcement by the federal government in November 2020, when an amount of N66.5 billion ($ 175 million) was donated to 35 states that have made progress with yet another new COVID-19 response. DLI: Adoption of the revised COVID-19 response budget for 2020 by 31 July 2020.
The minister noted that since the first disbursement in April 2020, the federal government has paid out N 233 billion ($ 620.6 million) to states in the amount of $ 750 million in World Bank financial transparency, accountability and sustainability. States (SFTAS) Results Program.
Ms Ahmed reiterated that the World Bank-supported SFTAS program is primarily designed to strengthen state fiscal management to ensure that financial resources are effectively mobilized and used for the benefit of their citizens in a transparent, accountable and sustainable manner. thereby reducing taxes. risks and encouraging a common set of fiscally responsible behavior.
He noted that the SFTAS program could not have come at a better time, given the decline in government revenues caused by oil price volatility, as well as the current impact of COVID-19, which has further reinforced the need for improved practices on tax transparency and accountability. and sustainability in line with SFTAS ideals.
The Minister stressed that with a total disbursement of N 233.264 billion (US $ 620.2 million) since the start of the Results Program, “we have so far successfully adapted and implemented the SFTAS Program to provide timely support to states in order to strengthen their financial capacity to address the multiple financial problems in their respective areas. “
“The increase in the number of beneficiary countries and the results achieved indicate a wider acceptance of the SFTAS ideals by all states in the Federation, and this marks a new era of transparency and accountability in tax administration at the subnational level,” he said. – he confirmed.