The Adamawa state government is to undertake a mandatory reform of its financial laws as part of the requirements of obtaining the $50 million loan which the state is seeking from the World Bank.
The Permanent Secretary, ministry of finance, Isah Omar, says the loan is to enable the state execute some capital projects earmarked in the 2012 fiscal budget.
While presenting a breakdown of the 2012 fiscal budget to journalists, Mr. Omar said the recurrent and capital expenditure for the year has been pegged at N87.9B.
Mr. Omar also says that part of the reforms to be undertaken include ensuring that the bill on public procurement which is before the state legislature is passed by the state assembly and consequently enacted into law by the government.
The state government has also decided to align itself with the new personal income tax code recently introduced by the federal government through the Federal Inland Revenue Service (FIRS) to enhance the internally generated revenue of the state.
Hence the Pay As You Earn (PAYE) system and all withholding taxes that form the bulk of the state internally generated revenue will be closely monitored for maximum results, from all MDAs of the state.
“The public procurement act that will soon be in place is something that we view is very good for the state. We have started by training some people locally here,” Mr. Omar said.
He said 40 accountants and personnel of the relevant departments are to be trained to acquaint them with the public procurement act, adding that study tours to other states of the federation where the Act is already in use have been concluded. He urged the state lawmakers who have the bill before them to expedite action on its passage.
The budget breakdown shows the government plans to expend N45.3B on recurrent expenditure leaving the balance of N42.5B for capital projects.
Some key capital projects which the state plans to execute include the construction of 35km Kiri-Shelleng Road; 25km Michika-Kamale Road; 1.5 Km Choncha Bridge on Karlahi Mapoe road; 40km Sebore-Tola Road and the rehabilitation of Jimeta Yola water treatment plant- totaling N7.5B.
The World Bank has however predicated the release of the loan on the Governor Murtala Nyako’s administration meeting some requirements stipulated by it; specifically, the reforms of financial administration.