Only Lagos and Kaduna states generated more than enough Internally Generated Revenue (IGR) to cater to their operating expenses while Taraba, Katsina, Bayelsa, and Zamfara states required over seven times their IGR to manage their operating expenses.
This is contained in a 20-page BudgIT 2023 annual States of States report with the theme, “Subnational Healthcare Delivery for Improved Economic Development,” formally released on Tuesday in Abuja.
“For the 2023 edition, the fiscal performance table received a new entrant, Anambra, as Rivers retained its number one position, making it the 4th time in a row. However, Cross River lost its place in the top five and fell to the 9th position.
“Adamawa recorded the most impressive improvement as it moved ten places up to 23rd from its 33rd position the previous year. The most drastic decline happened to Kebbi as it retrogressed 13 places downward on the fiscal performance ranking to the 28th position.
- Tinubu sacks NAHCON CEO, appoints ex-Aso Rock Perm Sec
- Nasarawa: PDP guber candidate tackles Gov. Sule over appeal against tribunal verdict
“Only two states, Lagos and Kaduna, generated more than enough IGR to cater to their operating expenses; Taraba, Katsina, Bayelsa, and Zamfara required more than seven times their IGR to manage their operating expenses,” a summary of the report signed by Nancy Odimegwu, Communications Associate, said.
According to the report, Abia, Imo, Yobe, Zamfara, and Plateau states did not raise enough total revenue including their combined IGR, federal allocations, and grants, to cater to their recurrent expenditure.
“This means these states resorted to borrowing to manage some parts of their recurrent expenditure and capital expenditure. The number of states that prioritized capital expenditure over recurrent expenditure doubled from the previous year to ten states. Zamfara and Plateau were new entrants in the bottom five positions on the overall fiscal performance table,” the report said.
It added that the cumulative revenue of the 36 states grew by 28.95% from N5.12tn in 2021 to N6.6tn in 2022; while the IGR of the 36 states appreciated by 12.98% from N1.61tn in 2021 to N1.82tn in 2022, denoting a strengthened domestic revenue mobilization capability.
In the report, BudgIT’s Research and Policy Advisory Lead, Mr Iniobong Usen, urged the states to reduce their over-reliance on federal transfers but broaden and diversify their tax base, which currently is predominantly PAYE-dependent.
Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.
