Contrary to claims in some quarters of rising borrowing by the Rivers State Government, the debt profile of Rivers State has come down to N18billion.
Commissioner for Finance, Dr. Chamberlain Peterside, told newsmen on Monday shortly after the Rivers State Governor, Chibuike Amaechi, signed the 2015 Appropriation Bill into law in Government House, Port Harcourt that the administration is planning not to leave any debt for the incoming administration.
According to him, the state pays between N8billion and N10 billion monthly for the past four years in order to reduce its debt burden.
“As I speak, our loan obligation is around N18billion. You have to realise that we pay, at least, N8billion to N10billion monthly in loan repayment, and this has been going on for quite a while. It is unfortunate that people go about accusing the government of borrowing between N200billion and N300billion; these people don’t realise that you don’t borrow and sit on it. So, you continuously pay down your debt,” the commissioner said.
Peterside explained that because of the quest to reduce the debt burden, government has resorted to deficit financing, which is totally based on realistic expectation since it is short term and can be repaid in quick succession.
Commenting on the 2015 budget, put at N338billion, the commissioner stated that, “there is no deficit financing because it is totally based on realistic expectation of internally generated revenue and federal allocation. And as we speak, government is on track to fully pay back its debt. We have had a high significance of our loans repaid,” he added.
He assured that the budget will be judiciously implemented, arguing that the most important aspect is to fund recurrent expenses, such as pensions, salaries with little of capital funding to complete ongoing projects.
Peterside emphasized that, “wherever we stop by the day of handover is where the next governor will continue.”
On his part, Chairman, House Committee on Finance, Hon. Josiah John Olu, expressed satisfaction with the way the Amaechi administration has prudently managed the state funds.
The lawmaker representing Eleme Constituency, stated that most of the budget will be funded with proceeds from internally generated revenue to the tune of N97billion, adding that this is why the House decided to strengthen the State Internal Revenue Board.
Olu further said, “2015 budget is 13 per cent lower than last year’s…We are mindful of the fact that the global outlook for oil price is on the decline, and that is why we decided to drop the budget at the state level as well”.
A breakdown of the budget indicates that N119billion is earmarked for recurrent budget, while N219billion was slated for capital expenses, thus bringing the total to N338billion.