The
optimum pleasure a kid derives from being beaten or scolded is wailing, which
often follows suit, just exactly as an analyst or a critic feels while
criticizing a certain ill-advised policy from any politician in a position of
authority.
On Thursday, 30th November 2017,
the Executive Governor of Cross-River State, Prof. Ben Ayade categorically presented
his administration’s 2018 appropriation bill to the state’s legislators. To the
people’s utmost surprise, the execution of the proposed budget tagged ‘Kinetic
crystallizations’ was estimated to cost 1.3 trillion naira. The budget had over
200% increment as against that of 2017 of 301 billion naira. 70% of the budget
was estimated to be utilized on capital expenditure whilst 30% would go for recurrent
expenditure.
While I was trying to fathom how
Cross-River got to this point, subsequently on Monday December 11, 2017, the
Governor of Lagos State, Mr. Akinwunmi Ambode presented another budget proposal
worth up to a trillion naira. The budget, which was branded ‘Budget of progress
and development’, was estimated to be serviced with 1.046 trillion naira with
about 28.67% increase compared to that of 2017 of 812 billion naira.
The ratio of the capital to recurrent
of the Lagos historic budget was given as 67/33% amounting approximately to
#699bn and #347bn, respectively. The governor revealed that the estimate for
total revenue of the year 2018 was #897.423bn, whereby #720.123bn was to be
generated internally and #148.699bn to be sourced through deficit financing
within the state’s Medium Term Expenditure Framework (MTEF). Meanwhile, we were
not notified how the remaining #28.601bn would be realized.
Gov. Ambode equally disclosed that as at
November 2017, the state’s revenue performed at #448.396bn at 76% compared to
the full year’s performances in 2016 of #449.609bn at 83% as well as #399.382bn
at 82% for 2015. These statistics indicate that the total revenue for 2017 may
not be up to 83 per cent as against that of the previous year (2016) let alone
outshining the worth of the said fiscal year. This implies that there’s a
foreseen drop of revenue in the state, thus 2018 might not be exceptional.
To acknowledge that some states in
Nigeria now compete with the country in terms of budgetary is arguably a thing
of worry for any concerned sane mindset. The ongoing astronomical increase of
the annual budgets of most states across the federation has become a scenario
that requires an unbiased analysis and review by every relevant stakeholder.
For
states like Lagos, whose major Internally Generated Revenue (IGR) is usually derived
from tax, to come up with a budget proposal of #1.046tn amidst a recessionary
era is really ill-advised. As weeks unfold, the rate of redundancy all over
Nigeria gets to a different alarming level, signalling possible liquidation of
most existing firms in the nearest future; yet, a proposed annual budget that
mainly depends on tax would be estimated to cost over a trillion naira.
The above assertion shows that in the long
run, over fifty per cent of the budget might be financed by funds sourced via
borrowing. Aside borrowing owing to contingencies, the budget is already a
deficit budget because the estimated total revenue is less than the total fund
budgeted. Such a measure, which has inadvertently become a norm in Nigeria,
does not augur well for any entity or individual involved that truly wishes to
emerge financially buoyant.
That of Cross-River – a state that is
majorly dependent on oil and gas – is as well another mind-boggling
compilation. It’s not anymore news that by the day, everyone lives in
scepticism as regards what the fate of the oil industry entails in the
contemporary global society, thus Nigeria isn’t an exception over the lingering
fear of the unknown.
I would say unequivocally that some of the
clauses captioned in the Prof. Ayade’s 2018 budget proposal were mere
frivolities. For instance, #2bn is budgeted for school feeding programme. The
question here is; is the state really in need of such approach? Rather than discuss
how to better the lives of the citizenry in their entirety so that they can
take care of their homes, we are discussing how to feed their wards. Teach them
how to fish, and not to feed them with fish.
Same is applicable to the #52bn mapped
out for social welfare, to cater for the aged. If the children of the targeted
beneficiaries are comfortable, they don’t need to be fed by the government. Similarly,
the #7bn to be expended on the state’s job centre toward training unemployed
youths with ‘marketable job skills’ is needless. The government is expected to
rather concentrate on how to create an enabling environment that would enable
the youth to explore or commercialize their respective patents. Among all, how
long can these projects be sustained?
It’s equally noteworthy that some of the
clauses mentioned in any of the aforementioned budgets might end up implementing
white elephant projects that have remained a monster in our present days’ democracy,
hence one of the prime needs for the two concerned legislative chambers to holistically
examine the appropriation bills critically before passing them.
However, since price of goods and services
remain the main determinant of the cost of servicing any budget, as prices of
commodities continue to skyrocket unabated in the Nigeria’s markets on a daily
basis, the total estimated funds for these budgets have the tendency of
emerging far higher during the concerned fiscal year. Think about it!
Comrade FDN Nwaozor
Executive Director, Docfred Resource Hub (DRH) - Owerri
__________________________________
frednwaozor@gmail.comFollow me: @mediambassador
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