FG proposes 3.13% increase in LG allocation

As the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) plans to review the current revenue allocation formula in the country, the Federal Government has proposed a 3.13 per cent increase in local government allocations as well as marginal cuts in state and federal allocations.

The Secretary to the Government of the Federation (SGF), Mr. Boss Mustapha, gave the position of the Federal Government in Abuja on Tuesday at a town-hall meeting for the review of the vertical allocation to the federal, state and local governments.

Under the current vertical Revenue Allocation Formula, the federal government gets 52.68 per cent; state governments 26.72 per cent; local governments 20.60 per cent, while 13 per cent goes to mineral producing areas as derivation.

Mustapha, who was represented by the Permanent Secretary, Political and Economic Affairs in the Office of the SGF, Mr. Andrew Adejoh, proposed a 3.05 per cent reduction for the federal government and a 1.1 per cent cut in states’ allocation.