In spite of the dwindling economic fortunes of the country and projected drop in revenue accruals from the Federation Account the cumulative financial figures of state governments has shown that about 12 states have effected huge increases in expenditure totalling N697 billion in their 2016 budget with economy experts saying they will run into funding crises.

Though 20 states reduced their figures the massive increases in the 12 states ensured that cumulative figure of N5.388 billion surpassed 2015 figure of N5.267.

The Federal Government and the 32 states that have announced their budgets, collectively, will spend N11.4 trillion this year compared to the N10.3 trillion they spent in 2015.

In the breakdown of their 2016 budgets sent to their various legislatures as at last week, some of the 12 states expanded their expenditure by over 100 per cent.

The states are Cross Rivers which jumped to N350 billion from N127.85 billion, an over 173 per cent increase followed by Oyo state jumping by over 113 per cent to N165.1 billion from N77.1 billion last year.

Other states with huge jump in expenditure estimates include Sokoto with over 55 per cent jump to N174.5 billion against N112.5 billion last year, Jigawa with 35 per cent jump to N137.2 billion from N101.6 billion, Lagos with over 35 per cent jump to N662.6 billion from N489.6 billion and Kano with over 30 per cent raise to N275 billion from N210.7 billion.

Five other states recorded significant increases include Adamawa with over 19 per cent increase, Niger and Yobe states with over 10 per cent increases each and Delta and Ebonyi with about five per cent increases each, while Kwara has a marginal two per cent increase in its expenditure plan.

Altogether, the 12 states that declared higher figures will spend N2.531 trillion this year as opposed to the N1.834 trillion they spent in 2015. In essence, in 2016, they will spend N696.984 billion more than they did last year.

The developments are coming on the heels of a similar significant jump in the expenditure plan of the Federal Government in 2016 Appropriation Bill showing over 20 per cent jump to N6.1 trillion from N5.1 trillion in 2015.

While the Federal Government indicated its intention to bridge the expected funding gap through internal and external borrowings, the affected states did not give any such indication except that they intend to increase their internally generated revenue, IGR, which over the years have consistently fallen short of projections.

Also most of the states are already indebted to banks so much that they can no longer borrow given the debt management option already in place for them.

Some other states, however, slashed their expenditures, apparently reflecting the gloomy revenue prospect of the current fiscal year.

The states include Abia, Akwa Ibom, Anambra, Benue, Borno, Edo, Ekiti, Enugu, Gombe, Imo, Kaduna, Katsina, Kebbi, Kogi, Nasarawa, Ogun, Osun, Plateau, Rivers and Taraba.

The trend in expenditure increases and reductions cut across party lines as both APC and PDP states were involved in both.

States that are yet to present their 2016 budget proposals are Bauchi, Bayelsa, Ondo and Zamfara states.

The prevailing free fall of crude oil price, which as of yesterday was $37.2 per barrel is already hurting Nigeria’s fiscal plan as the existing revenue projections at $38 per barrel is already hitting a shortfall.

A decline last year accounted for why many states went for a bailout from the Federal Government to pay their workers salary arrears late last year and they are still owing.

•Excerpted from a Vanguard report. Photo shows a cross section of state governors and President Buhari.

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