The 6-state budget- A shallow Analysis

2015 Budget – Select States’ Budget – A ‘shallow’ desktop Analysis!
Here is the budget breakdown of the six states I have selected – I hope unlike one of my friends who claims he does not know that the state also make budgets – Shocking but true.
StateAmount
‘Nb  Internally Generated Portion (%)Recurrent (%)Capital (%)Health
% of total budgetEducation
% of total budgetLagos490704951916Delta409194060Not seenNot SeenRivers3382036640.63Kano2102036642.48.6Kaduna201173565610IMO140124357Not seenNot seen
Commentary:
States do have budgets like the FG . See above chart.
Most states depend on the federal Allocation (from oil proceeds) for nearly 80% of their budgetary expenditure. No wonder the push to share entire excess crude accounts. Lagos is an exception (70% of budgetary spend is from IGR). but indirectly depends on the FG as well – if oil proceeds decline , economy slows , private sector struggle ( staff lay offs , no new recruitment , new businesses do not set up); trade slows as well – so Lagos IGR will decline.
States spend average 55% on capital expenditure. The remaining 45% on recurrent. This is good news – at least , the states will be spending to develop capital projects. The downside is that the state governments do not employ new people and do not devote enough funds to civil service reforms. We cannot recruit new teachers , new Doctors etc. Productivity of existing staff  remain very low, the cycle goes on and on.
See the quality of services we receive from state governments – abysmal and in most cases worse than what we get form FG.
Spend on education is very low in most states , Lagos has in 2015 raised spend on education to 16% of budget from usual 9%. We may need to look at more creative ways of delivering ‘free’ education!! The amounts allocated can hardly fund any meaningful education!!
This is no wonder we will keep working for ‘private school owners’. If you are wondering what business to go into , private education is a gold mine of sorts.
Most states have what you call ‘democratic’ budgets – small allocation to many activities with no clear focus to top 3 priorities that can change society – check Kaduna , Kano – I thought they should push funds to education to build a better future.
Many of the state budgets are pretty opaque – monies creatively allocated  to headlines you cannot easily interprete – General public service , Social protection , Administration, special heads , votes and others
Most states have not stated what goes into debt servicing. This may be taking over 10% of state budgets I suspect.
The budgets are so small eg – Lagos/Delta  has N 490b – approx10% of FG budget – No wonder it takes 10 years to complete a 25km road.
Here is a list of needs that await the state governments:
Only 12% of lagos residents get access to pipeborne water from the state.
Only 9%/14% of Rivers and Delta residents respectively get access to pipe borne water from the state
No state has built an entirely new primary or secondary school since 1984. Most have either refurbished an existing one or built one to replace one at another location.
Our general hospitals – most were built in 1980s are being constantly refurbished or remodeled – population has almost doubled since then.
One or two  states have taken the audacious step to build many new General hospitals – the project is stuck – no funds to continue!!
Only 12 states have established new universities or polytechnics past 20 years – the carrying capacities are below 3000 students!!
Most of the states budget only below 5% of their annual spend to security – little wonder the hoodlums take over!!


With this picture , we will be developing but slowly  for a pretty long time unless we design more creative and collaborative ways to drive development in our states. Acc.elerated development will desire a step change in our thinking. I am not hearing that narrative
What was striking to me is that none of the states examined has planned for such developmental and often touted projects like – new towns development – no wonder the slums keep growing; none has planned for SME cluster – so much for SME development ; none has planned for social housing!
My charge to you is to spend more time reflecting on the state of the states in which we live and pay our taxes, politicians have distracted many of us and shifted our entire focus to Abuja!!
Your views please!!