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Sections News Editorial/Opinion Cover Choice Arts & Life Business Politics Sports   Subscription Form Click here       Daily Independent Online.         * Monday, July 05, 2004. Why states shortchange LGs  - Tukur By Onyekachi Eze Senior Reporter, Abuja Some states governments capitalise on the loophole in Section 162 of the Constitution on the operation of state/ local government joint account to shortchange councils, the Chairman of the Revenue Mobilisation and Fiscal Commission (RMAFC), Mr. Hamman Tukur has said. At the third yearly public finance lecture hosted by the Lagos State House of Assembly, Tukur expressed regret that this action of the states governments left the councils with little or nothing for recurrent or capital expenditure. The provisions of Section 162 (5) of the constitution, according to the RMAFC chairman appeared to have contradicted the provisions of Section 162 (3) that stated that funds from the federation account are allocated to states for the benefits of councils instead of directing such allocations to be paid directly into specific councils. He alleged that the states government capitalised on this contradiction to under-pay their councils in the allocations from the federation accounts. He said his commission was in the forefront of those advocating for the enactment of laws that would facilitate the opening of states-local governments accounts and the establishment of state allocation committees for such accounts on the understanding that it would provide opportunities for states to make the constitutionally required contributions to the finances of councils in their domain as required by Section 162 (7) of the 1999 Constitution. He said transparency in the administration of council funds would be successful unless the provisions of the constitution are complied with and the ambiguities created in the running of the state and council accounts were rectified. On the nation’s debt profile, Tukur noted that the states’ fiscal capacity might not be healthy in repaying the loans and at the same time deliver the much talked about dividends of democracy to the people, adding that “When public debts are high, the well-being of the entire nation is mortgaged as the funds available to governments for development are almost proportionately low.” Nigeria’s total debt as at December 31, 2003 was $32.916 billion. Combined state governments’ share stood at $7.658 billion or 23.3 per cent while the federal government has $25.258 billion or 76.7 per cent hanging on its neck.       Copyright� 2002. All Rights Reserved Independent Newspapers Limited Block5, Plot 7D, Wempco Road, Ogba, P.M.B. 21777, Ikeja, Lagos State, Nigeria. www.dailyindependentng.com e-mail: [email protected]

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