Rising Debt: Expenditure Reduction Not Viable Option -DMO
The Debt Management Office (DMO) says revenue generation is a major constraint of the Federal Government (FGN) and impacts the country’s debt situation negatively.
Patience Oniha, Director-General of the DMO, said this in a telephone interview with the News Agency on Sunday in Abuja. According to Oniha, systemic resource mobilisation has been compounded by recent economic recessions.
She said that the most viable solution to the country’s challenge remained to grow revenues and plug all leakages, as cutting expenditure was not a viable option. READ: DMO Tasks FG on Better Revenue Drive to Reduce Borrowings
She, however, said that several measures were being taken by the Federal Government under the Strategic Revenue Growth Initiatives (SRGI) to improve revenue and fiscal prudence.
“These measures include improving the tax administration framework, including tax filing and payment compliance improvement. According to her, it also includes evaluation of the process and policy effectiveness of fiscal incentives.
Oniha said that the Federal Government was also taking measures to identify and plug existing revenue leakages to enhance tax compliance and reduce evasion.
“To further enhance independent revenue collection, the Nigerian government aims to optimise the operational efficiencies and revenue generation focus of government agencies.”
“Introduction of new and further increases in existing pro-health taxes, like the excise on carbonated drinks” will also enhance revenue generation, she said. # Rising Debt: Expenditure Reduction Not Viable Option -DMO