Budget 2021: States Should be Realistic on Their Revenue Projections - Abel Akeni, BudgIT
As State Governments plan to prepare and send in their 2021 budget estimates, their revenue projections should be realistic and reflect the adjustments to the socio-economic developments that have resulted from the crude oil price volatility and the COVID 19 Pandemic.
Mr. Abel Akeni the Head of Research and Policy, BudgIT made this point as a guest on the "Economy and Politics" show anchored by Ottoabasi Abasiekong. He said the "2020 State of States report" produced by BudgIT revealed that 11 states have their overhead costs higher than their capital expenditure, while about 5 states at the moment had fiscal stability.
It also showed that 13 states lack the revenue capacity to fund their recurrent their capital expenditure. Mr. Abel Akeni emphasized the need for states to explore the public-private partnership, PPP model to attract private investments into the economy, while stressing the need for the widening of the tax net, blocking of leakages, investment in water rehabilitation, sanitation and should work assiduously to reduce their debt profile.