Experts Commend Fiscal Responsibility Act To States

Some experts at a recent retreat in Calabar, have attested to the level of macro-economic stability that has been recorded since the enforcement of the Fiscal Responsibility Act, 2007 by the federal government.

They noted that the government saved more than N115 billion between 2008 and 2012, and suggested that state governments too should adopt the legislation.

Chairman, Fiscal Responsibility Commission (FRC), Alhaji Aliyu Yelwa,  who spoke at the retreat tagged: “Awareness on the Provisions of the Fiscal Responsibility Act (FRA), 2007’’, stressed that the adoption of the act by states would boost economic growth.

He stated that the federal government’s Consolidated Revenue Fund rose from zero level in 2008 to N86.77 billion in 2012 following the implementation of the FRA.

Yelwa said that the feat would be replicated in the states if they adopt the FRA.

“After four and a half years of enforcement and monitoring of the FRA 2007 at the federal government level, there has been reasonable achievement in macro-economic stability of the national economy, prudent management of resources, fiscal discipline and transparency.

“Before the Fiscal Responsibility Commission came into being, ministries, departments and agencies were not obliged to pay operating surpluses into the Federal Government Consolidated Revenue Fund.

“From inception to 2012, the FRC had urged corporations to increase their contributions from nothing in 2008 to N17.09 billion in 2009, and progressively thereafter to N86.77 billion in 2012,’’ he said.

Experts insist that since the FRA is working well at the federal level, states should adopt it since they collect huge allocations from federally collected   revenue every month.

Commissioner, Policy and Standards at the FRC, Dr Sylvester Mordi, insists that for prudent management of the nation’s resources, states and local governments must also ensure accountability through fiscal responsibility.

Mordi said that at present, the FRC, going by its act and the constitution of the Federal Republic of Nigeria, can only appeal to states to join, and not to force them.

It is, however, a welcome development that some states had indicated interest to adopt the FRA.

Niger recently sent a delegation to the FRC headquarters in Abuja to be acquainted with the FRA.