BudgIT ranks Edo high on ability to meet recurrent expenditure

BUDGIT has hailed Edo State government for prudent allocation of resources.

It said this has enabled the Governor Godwin Obaseki-led administration to meet its monthly recurrent expenditure commitments.

The civic oganisation’s “State of the States 2018 Report on the Ability of States to Meet Monthly Recurrent Expenditure Obligations for January – June 2018,” said: “Rivers, Bayelsa, Delta, Akwa Ibom, Edo and Ondo are among the top 10 states in our Index.”

The organisation explained that “Index A looks at the ability of states to meet their recurrent expenditure with internal revenue, including 13 per cent derivation. States, such as Rivers, Lagos, Delta, Bayelsa and Edo top Index A.”

On Index B, which looks at states’ ability to cover recurrent expenditure without borrowing,  the organisation noted: “…about 16 states could cover the recurrent expenditure obligation without borrowing funds– a marked improvement over 2017.

“In the first six months of 2017, only four states could effectively meet their recurrent expenditure without borrowing, selling assets or/and donor funds. States, such as Kano, Bayelsa, Edo, Rivers and Delta top the index.

BudgIT added that “Edo appears to have shown some initiative by trying to resuscitate its rubber and palm plantations in conjunction with the private sector, a move likely to increase earnings.”