Budget provisions for road transportation'll lead to huge deficit - FG

THE Federal Government revealed, onThursday, that it was very difficult to intervene in the road transport sector because of the huge fund required, which could not be sourced from the nation's annual budgetary provisions.It stated that budgetary provisions for road transportation and maintenance could distort allocation and would lead to huge deficit.The Minister of Labour and Productivity, Chief Emeka Wogu, made the revelation while speaking at the inauguration of the newly constituted members of the National Executive Council of the Nigerian Association of Road Transport Owners (NARTO), held at the Sheraton Hotel and Tower, in Abuja, on Thursday.'Intervening in this sector was difficult because of the quantum of funds required, which could not be sourced from annual budgetary provisions. Budgetary provisions for road transportation and maintenance could distort allocation leading to huge deficit,' he said.Chief Wogu, however, said that though the Federal Government was also not willing to finance them from external borrowing, it had decided to look inward to execute the projects that have direct impact on the common people.The minister state that the proposed removal of petroleum subsidy, which was serving a very small interest of clique, would be ploughed back to intervene in some of these projects.He pointed out that road transportation is very critical to the nation's economy and the government was not unaware of NARTO's sacrifice and contribution to the development in the transportation sector.He told them that the government was currently articulating means of direct interventions in the sector through provision of mass transport buses and fixing of the roads to ease their burden.The president of NARTO, Alhaji Ibrahim Bataiya, outlined in his speech areas of concern in the transportation industry.He promised that the association would strive to ensure that the President Goodluck Jonathan-led government succeeded.transportation by roads to minimise accidents and the removal of 5 per cent withholding tax imposed on their members transporting petroleum products across Nigeria.Other demands were the provision of adequate highway security and government scheme that would enable NARTO members' access to soft loans for vehicles replacement to boost the transport subsector.
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