The federal government says it spends about 70 per cent of the revenue inflow into the Consolidated Revenue Fund account on recurrent expenditure.
The Minister of Finance, Mrs Zainab Ahmed disclosed this recently in a presentation made at a retreat on the Integrated Personnel and Payroll Information System.
The Consolidated Revenue Fund is an account that is owned and managed by the federal government, where all its revenues are paid.
The event, 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.”
The IPPIS scheme, which commenced in 2007 is one of the federal government’s reform initiatives designed to centralise payroll and payment systems, facilitate convenient workers’ remuneration with minimal wastage, aid manpower training and budgeting.
It also facilitates planning, monitoring of the monthly payment of workers emoluments against what was provided for in the budget, ensures database integrity, facilitates easy storage, as well as updating and retrieval of personnel records for administrative and pension processes.
She described a situation where the 70 per cent of the federal government revenue was spent on recurrent as worrisome, adding that if not corrected, it would not free the much-needed resources for improving the standard of living of the people.
She said that the concept of IPPIS was an integral part of the federal government’s public finance reform initiative aimed at ensuring transparency and reducing the cost of governance.
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.”
The finance minister said through the successful execution of policies, projects and programmes enshrined in this year’s budget, massive jobs would be created.
She added that issues of insecurity, poverty and poor standard of living would be “faced squarely” through the implementation of programmes contained in the budget.