Katsina Relied On FAAC For 87% Of Recurrent Expenditures In 2025 – Commissioner

Katsina State commissioner for budget and economic planning, Malik Anas, has disclosed that receipts from the Federation Accounts Allocation Committee (FAAC) accounted for over 87 per cent of the state government’s recurrent expenditure in the 2025 fiscal year.

Anas made the disclosure while briefing journalists during the monthly press session held at the residence of the deputy governor, Faruk Lawal Jobe.

According to the commissioner, FAAC remained the backbone of the state’s revenue structure, providing the financial stability required to meet core government obligations, including salary payments and essential operational costs.

He explained that the monthly FAAC allocations reflected prevailing fiscal realities across Nigerian states, where statutory allocations continued to play a central role in budget financing.

“FAAC inflows sustained liquidity throughout the fiscal year and enabled the government to maintain critical recurrent expenditures,” Anas said.

However, he acknowledged that fluctuations in national revenue affected overall performance, noting that statutory receipts fell slightly below revised expectations.

The commissioner cautioned that heavy reliance on FAAC exposed the state to external economic shocks, including oil price volatility and adjustments in federal revenue distribution.

“This concentration risk highlights the urgency of strengthening internally generated revenue and diversifying the state’s income base,” he stated.

He said the government had intensified domestic revenue reforms aimed at expanding the tax base, improving compliance, and enhancing collection efficiency through automation and monitoring mechanisms.

While incremental improvements were recorded, he admitted that IGR performance remained below the revised target, underscoring the need for deeper structural adjustments.

Despite revenue pressures, Anas emphasised that prudent financial management and expenditure prioritisation helped the state maintain fiscal stability and continuity of public services.

He reiterated the government’s commitment to improving budget credibility, enhancing revenue forecasting accuracy, and aligning spending with development priorities.

“The administration remains focused on building a more resilient and diversified fiscal framework,” the commissioner added.