WORLD Bank Group is set to assist Nigeria’s State
Governments improve their fiscal sustainability
by strengthening and consolidating the Fiscal
Sustainability Plan FSP. This was stated in a
statement signed yesterday by the Director of
Information Federal Ministry of Finance SALISU
NA’INNA DAMBATTA. The FSP was introduced by
Federal Government in 2016 as part of the measures
to tackle the 2015-2016 fiscal crises that followed
the decline in revenue and budget cuts leading to
two financial bailouts for the States by the Federal
Government.
The Plan is also an instrument for reforming
the whole gamut of the Public Sector Financial
Management PSFM system spanning the three tiers
of government. The 22-point FSP was acceded to
by the State Governments in 2016 to implement
fundamental reforms by taking measures including
instilling a regime of fiscal transparency and
accountability, improving Internally Generated
Revenue (IGR), the taming of unnecessary recurrent
expenditure and strengthening adherence to debt
management guidelines by the States.
The proposed intervention by the World Bank
would involve financing capacity building and
providing technical support for officials in the 36
States of the Federation by equipping them with
the requisite knowledge and skills to effectively
manage the comprehensive implementation of the
components of the FSP on a sustainable basis.
The objective was to ensure that the States were
put on the path that would lead them out of the
situation in which they have to be bailed out or fail
to meet their financial obligations for the wellbeing
of the citizenry.
The capacity building programme would also
include imparting skills that would contribute in the
successful implementation of the Open Government
Partnership commitments with the view to
boosting the fiscal transparency and accountability
component of the Fiscal Sustainability Plan.


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