Federal Govt Borrows To Pay Salaries

The federal government is currently borrowing money to pay salaries, the acting Accountant General of the Federation, Anamekwe Nwabuoku, has said.

At a retreat organised by the office of the AGF for members of the technical sub-committee on cash management, TSCM, in Abuja, on Tuesday, Nwabuoku said there was an increase in government expenditure, due to rising security challenges and the social needs of the citizenry.

He said: “We have to borrow to augment payment of salaries and wages. This shows we are in very difficult times. Government income is highly challenged.

”Records available indicate that due to dwindling revenues, the treasury had to resort to other sources to augment the payment of federal government public servants.

He said there was an increase in government expenditure due to increasing security challenges and social needs of the citizenry.

The acting AGF called for deliberate efforts to revert the trend through fiscal discipline, economic diversification, export sector promotion and plugging revenue leakages, among others, to ensure revenue inflow.

“Now that these challenges stare us in the face, you are all expected at this gathering to come out with ideas that will push us through.

“Therefore, we must all, at this retreat, strive towards identifying the challenges to revenue generation and other means of enhancing inflow into federal government cash box; ensuring the cutting down of cost of governance in the most acceptable way and ensuring synergy among and within stakeholders in the sub-committee.”

The acting AGF lauded the efforts of the Minister of Finance, Budget and National Planning, Zainab Ahmed, for her consistent support in improving members’ capabilities.

In his remarks, the Director of Funds, OAGF, Sabo Mohammed,, said a deeper fiscal discipline required that government avoided excessive borrowings.