Federal Government has proposed that Local governments should get more allocation in the new revenue formula.
The FG also recommended a reduction in the vertical allocations to it and State Governments.
According to the reports, Secretary to the Government of the Federation (SGF) Mr. Boss Mustapha, stated these while representing the Federal Government at the town hall meeting in Abuja for the review of the vertical allocation to the Federal, State and Local Governments made this disclosure.
Represented by the Permanent Secretary Political and Economic Affairs in the Office of the SGF, Mr. Andrew Adejoh, the SGF said the Federal Government will take a 3.05 per cent reduction in the allocation from the Federation Account and 1.1 per cent reduction in the allocation to State Governments.
For the Local Governments, the Federal Government wants 3.13 per cent added to their monthly take-homes from the Federation Account.
“As an interim and immediate measure, the Federal Government, is, therefore, proposing the following: Federal Government 50.65 per cent; State Government 25.62 per cent; Local Government 23.73 per cent and Derivation Allocation 13 per cent.” the SGF said.
The present vertical Revenue Allocation Formula is Federal Government 52.68%; State Governments 26.72%; Local Governments 20.60% and Derivation Formula 13%.
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