Thursday, 20 September 2018

Cross River, Ekiti, Osun rank lowest in Financial control - BudgiT

According to a recent report from budgiT, Cross River, Osun and Ekiti states have emerged as the three states with the lowest performance in terms of being financially sustainable, as Cross River ranked 36th; Osun came 35th; while Ekiti was 34th in its 2018 edition of the 'State of States' Fiscal Sustainability Index report for the 36 states of the Federation.

The report which was published yesterday on Punch newspaper also shows that "Rivers State sits at the top of the Fiscal Sustainability Index due to its robust revenue profile and manageable recurrent expenditure obligation. The state's actual revenue of N209.1bn in 2017, when juxtaposed with it's recurring expenditure obligation of N141bn in the same year, indicates Rivers is fiscally stable and able to cover its recurrent expenditure without borrowing," while Lagos dropped from second to fourth place on its financial sustainability, notwithstanding the state's fiscal advantage but owing to its unusually high overhead costs and increasing debts.

In his explanation, Gabriel Okeowo, the Lead Principal, BudgIT Foundation, said the report came out of a rigorous nine-month research of fiscal structure of the 36 states in the country.

He said, "As we may contemplate that this research work may not be adjudged 100 per cent perfect, we can confidently say that it reflects the picture of the economic situation of the states based on the information available to us and in the public sphere.

"We are extremely concerned about the poor fiscal management thinking in Cross River with its bogus budget plan for 2018 of N1.3tn, which severely weighed it down on the index, in addition to the state's inability to meet its recurrent expenditure obligations, its heavy debt profile and inefficient IGR collection."

BudgIT said it anticipated that if states' economic planners could dig deeper into some of the products it had researched, they would find in them avenues to increase their respective IGRs, creating jobs and improving the wellbeing of their citizens.

 "States will need to focus on boosting IGR collection and simultaneously slowing down on borrowing. States will also need to look beyond rhetoric and commit to a reduction in their operating costs, including significantly slashing of unreasonable overheads, while freeing up more spending for social and economic infrastructure. The report concluded.


Could this be why Ekiti state governor is been hunted by EFCC? 

Could this also answer the question of Tinubu refusing Ambode a second term ticket for allowing Lagos to drop from second to fourth position?

Will this cost Adegboyega Oyetola his second term bid? 

And I believe the import of this report by BudgiT is very much evident in CRS and River state independently.

We will as well appreciate your thoughts on this story, let's hear from you as you share your thoughts on the comment section of this blog 

Ukorebi Esien blogs for TDN where he tells the Nigerian Story one article at a time just the way it is.

Source; Punch