Lagos, Rivers, Bayelsa, Delta, others top fiscal sustainability index

Rivers, Delta, Bayelsa and Lagos states have topped the 2018 fiscal sustainability index ranking.

According to the analysis by BudgIT on the fiscal condition of states, tagged “State of States”, Akwa Ibom, Edo and Ondo also ranked top positions as a result of their revenue profile and manageable recurrent expenditure obligation.

Besides, the report said Ekiti, Osun and Cross River ranked among the lowest performing states in terms of their fiscal sustainability.

The BudgIT report, which noted that the fiscal structure of states generally improved due to increasing oil revenue, stressed the need for state governments to tremendously embrace a high level of transparency and accountability, develop workable economic plans reduce overheads and cut down on debt accumulation without a concrete repayment plan.

BudgIT also identified a commendable appearance by the states with low expenditure outlay and sizeable debt such as Anambra, Enugu and Katsina.

The index looked at the ability of states to meet their recurrent expenditure obligations with their Value Added Tax (VAT) revenue, IGR and advantage income, and the ability of them to sustainably manage their debt profiles.

“We noticed that Abia had tightened its recurrent projection, providing it with the opportunity to leap on our sustainability rankings.

“Lagos dropped from second to fourth place on the fiscal sustainability index notwithstanding the state’s economic advantage. Its internally-generated revenue is relatively high. Her IGR as at the end of 2016 was N287 billion, from 2015 level of N268.2 billion,” the report added.