…says it’s meant for development of the state

BY GBENGA ARIYIBI

ADO-EKITI – Ekiti   State Government has defended its decision to raise N25billion from the capital market, saying it is the best option available to the state.

The government assured that the loan would be judiciously used for the overall development of the state.

The State Commissioner for Finance, Budget and Economic Development, Mr. Dapo Kolawole, spoke  weekend during the 2011 budget analysis, noting that the interest on the loan was far better that what could be obtained in most of the commercial banks.

The commissioner said Dr Kayode Fayemi had inherited about N10 billion  loan obtained by Engr Segun Oni regime, noting that the proposed N25 billion loan to be raised would subsumed the one raised by Oni.

He argued that  it would not have any negative effect on the economy of the state. Kolawole assured that the re-payment of the loan would be spread over a long period of time,urging the people of the state to invest in the loan.

The commissioner  noted that investors; both local and foreign ones, had been trooping in to the state to  complement the effort of the state government in its determination to open up the economy of the state.

According to him, the  government intended to gear up the Internally Generated Revenue, IGR, of the state, saying “this will be achieved by blocking loopholes usually associated with the internally generated revenue.”

Kolawole, who gave a break down  of the financial proposal for the 2011 fiscal year, said “all the sectors of the economy, as well as the ministries, parastatals and government agencies that are key to development would be adequately taken care of.”

He said the era of partial implementation of allocation to a particular sector or total marginalization of such sector was over, saying “the development of the state’s economy is dependent on the level of compliance to specifications in budgetary allocations.”

The Commissioner, said all loopholes that had depleted the IGR would be blocked for the State to be able to meet the target set for the 2011 fiscal year.

He added that the issue of revenue generation would be vigorously pursued by the present government in the state, noting that measures would be put in place to block all lope – holes in the revenue of the state.