By; PATRICK TITUS, Uyo
A group under the aegis of Tax Justice and Governance Platform has expressed fears over the possible dooms day in Akwa Ibom State as the debt profile has surged from N215.99 billion in 2019 to N347.75 billion in 2023, representing 61.1 per cent rise in four years.
Tax Justice and Governance Platform, which has membership nationwide, is a coalition committed to fair tax policies and effective public resource management for the welfare of citizens.
Addressing a press conference last weekend in Uyo, Chairman of the Platform, Mr. Harry Udoh described the surge in the state debt profile in just four years as alarming.
Titled the text of his Press Conference; “Akwa Ibom State Economic Challenges and Public Debt Management,” Mr Udoh said heightened debt burden posed serious implications for tax justice, while low-income residents of the state would become vulnerable to exacerbating socio-economic disparities.
Udoh, who was represented by Mr. Elkanah Oluyori, a member of the Platform, also noted that escalating debt posed challenges to effective public service delivery while funding for essential services would be diminished.
His words, “In recent years, Akwa Ibom State has witnessed a concerning surge in its debt profile. Data from the Debt Management Office reveals an alarming to increase From N215.99 billion in 2019 to N347.75 billion in 2023, highlighting a 61.1% rise in just four years.
“The burgeoning debt of Akwa Ibom State poses grave implications for tax justice. Heightened debt burden may spur regressive tax policies, disproportionately affecting low-income residents and exacerbating socio-economic disparities. Moreover, opacity in financial management jeopardizes public trust in government stewardship.” He stated.
Noting the possible drop in essential services, Mr. Udoh said, “The escalating debt has adverse ramifications for public service delivery, notably in education, health care, water and sanitation. As debt servicing claims a larger share of resources, funding for essential services diminishes threatening the wellbeing of vulnerable groups and hindering societal development.”
Highlighting further effects, the Forum said, “the mounting debt hampers entrepreneurship and economic advancement, prioritizing debt serving over crucial investments stifles innovation and job creation, fostering economic stagnation and perpetuating cycles of poverty.”
Recommending ways to address the associated challenges, the Forum said expanding the tax base by encouraging voluntary compliance and reducing exemptions would help generate more revenue for essential services.
Prioritizing investments in education, health, and entrepreneurship would help create sustainable long-term growth and foster inclusive development, even as improving the efficiency of tax administration processes would reduce cost and promote greater transparency and accountability.
According to the Forum, the recommendations align with the policy trust of the 2024 budget of the state, which aims to achieve a GDP growth rate of 3.76% and inflation of 21% while focusing on partnerships with foreign investors, robust human capital development among others.
