by Ajadi Daniel
It is perhaps no news that states in Nigeria are used to preparing budget that they do not have the financial capacity to implement.
It might be difficult to entirely avoid deficit when planning a budget, but states in Nigeria are becoming too comfortable with this tradition especially when it is obvious that they lack the administrative and fiscal capacity to make this deficit work in their favour. States with deficit most times have very poor Internally Generated Revenue, and only very few have come out with cost cutting and investment initiatives that will help transform the deficits into surplus. Rather than do this, they stubbornly continue with the budget, leaving most of the projects uncompleted, some are not even started at all, and they keep repeating them in subsequent budgets.
And those that are serious about implementing plunge their states into deeper debt. To repay this loan will depend on the quality and capacity of that project to pay back as well as financial discipline of the present and subsequent government. Unfortunately, TINAPA in Cross River does not fall into the category of such project.
The International Centre for Investigative Reporting clearly stated in a special report on states budget that all the states that have presented their 2018 budgets have a deficit but some states have taken theirs to absurd and unrealistic level.
A good example of that is the Cross River state’s N1.3 trillion budget of Kinetic Crystallization. There is definitely no how the state led by Ben Ayade will implement such budget without selling off the state into huge debt, a state whose 2017 budget was N307 billion!
The question is how does the governor intends to implement this budget, especially if he cannot state categorically that the 2017 budget which was N307bn was fully implemented even with huge internal and external debt incurred. TINAPA presently is languishing away in waste, the state is more of a civil service state apart from the few resorts. The point is that the cross river economy is not buoyant enough to generate enough capital to finance its budget, the private sector still remains small compared to the public sector.
Read also: On the states budget of hypocrisy, PR stunts and deficits (see figures)
Cross River’s external debt at the end 2017 is $167.9 million, while her domestic debt stands at N125.65bn. The Federal allocation accruing to the state in 2017 was N23.45 billion. The state’s IGR in 2017 was N18.104 billion. So her IGR and federal allocation is not at all sufficient to finance a quarter of her budget. The state is not an oil producing state. Hence the numbers are staked against that budget. The only way would be to go for loan both domestic and foreign. The budget is definitely unrealistic and unrealisable. Here is another reason, the total federal allocation Cross River has received in ten years, from 2007 to 2017 is N411billion. Compared to Lagos whose budget is N1.046trn, Lagos has an IGR of N333.97bn in 2017, the private sector in Lagos is far larger than the public sector. So we have to answer the question, it will be that the state intends going on a borrowing spree, thus further worsening the debt situation of the state.
It’s going to be finish of mine day, but before ending I am reading
this great article to increase my knowledge.
What’s up, I would like to subscribe for this weblog to take latest updates, so where can i do it please help out.
I think that everything posted made a ton of sense. However,
consider this, suppose you were to create a awesome title?
I mean, I don’t wish to tell you how to run your website, but suppose you added
something to maybe get a person’s attention? I mean How does
Cross River intend to finance its staggering N1.3trillion budget?
– YMonitor is kinda plain. You ought to look at Yahoo’s home page and see how they create article
titles to get viewers to open the links. You might
add a video or a picture or two to get readers interested
about everything’ve got to say. Just my opinion, it would make your website
a little bit more interesting.
Wow, this article is good, my sister is analyzing such things, so I am going
to inform her.
Quality articles or reviews is the important to interest the
people to go to see the website, that’s what this web page is providing.
What’s Happening i am new to this, I stumbled upon this I have discovered It positively helpful and it
has helped me out loads. I hope to contribute & aid different users like its helped me.
I blog frequently and I seriously appreciate your information. This article has truly
peaked my interest. I will book mark your site and keep checking for new
information about once a week. I opted in for your Feed as well.
Hmm is anyone else having problems with the pictures on this blog loading?
I’m trying to find out if its a problem on my end or if it’s the blog.
Any responses would be greatly appreciated.
I think this is one of the most significant information for me.
And i’m glad reading your article. But want to remark
on few general things, The site style is ideal, the articles is really excellent : D.
Good job, cheers
Hi i am kavin, its my first time to commenting anyplace, when i read
this paragraph i thought i could also make comment due
to this brilliant post.
I absolutely love your site.. Great colors & theme.
Did you create this website yourself? Please reply back as
I’m trying to create my own site and would like to
know where you got this from or exactly what the theme is called.
Your style is very unique in comparison to other folks I have read stuff from.
Thanks for posting when you have the opportunity, Guess I’ll just bookmark this blog.
Thanks for your marvelous posting! I definitely enjoyed reading it,
you could be a great author.I will be sure to bookmark your blog and will eventually come back in the foreseeable future.
I want to encourage continue your great posts, have a nice weekend!
I’m really enjoying the design and layout of your blog.
It’s a very easy on the eyes which makes it much more enjoyable for me to come here and visit more often. Did you hire
out a designer to create your theme? Great work!