By NWAODU LAWRENCE

As the campaigns for the off-season elections in Nigeria are finally here the following are guide to the most important questions to ask any subnational leader:

Part 1 – BUDGETING

How important is (would be) the State Fiscal Policy as regards –

(1) Appropriations:

(a) Budget size,

(b) Budget Integrity (how feasible and easy it is to accomplish the Budget – Budget Performance).

(c) The Integrity of the Budget estimates – the appropriateness and correctness of the numbers (ensuring there is no padding, inflation, multiple appropriations, insertions of fake and nonexistent projects, etcetera).

(d) Where will the Budget funding come from – Revenues, Debts, Aides and Grants or Project Partnerships and Supports (i.e. PPP, etcetera).

€ How the Budget is tended towards mapping out a Development and Growth Plan and Strategy of Accomplishment, rather than a mere Statement of Estimates and Expenditures.

(f) Budget Performance – what is the guarantee of accomplishing the Budget, even by half (because expenditures is directly related to available revenues), and development and growth are functions of huge, substantial, sustainable and targeted spending.

This is extremely important, because the very lives and existence of the residents of that State and the indigenes wherever they maybe, will depend on this facts and the integrity of this Fiscal Policy tool. As the Budget is the most important document and instrument of governance – no expenditure happens without appropriations, and it takes expenditures to get anything done – be it projects, salaries, pensions or even events.

A Budget that must work and bring growth and development is said to be at the least a minimum of 20 to 30 percent of the State GDP (that’s the Global/Continental best practice) – Source: World Bank (IBRD, IFC) and IMF.

If the public spending – fiscal injection into an economy is less than 20 percent (especially in an economy of the size and stage we have in this part of world), there would be too much contestation, struggle and desperation for the little resources in the system that may result to social distortions and inability to deliver on social services and growth – hence insecurity, unemployment, inability to attract investments, lack of growth and development, and general disillusionment, etcetera.

It Is therefore important to mark the Budget at minimum of 20 percent of the GDP to stimulate growth, development and ensure delivery of needed social services and the required infrastructures.

But setting the Budget estimate at 20 percent of the State GDP is not the challenge, for it is just a mere numbers; the integrity of the Budget numbers is where the challenge is – where will the funding for the Budget come from, and how will the Budget Performance be guaranteed at even 50 percent, at the minimum.

This is key because there is nothing that can be accomplished without a good and proper budgeting, as there cannot be any expenditures, without appropriations, and the entire exercise cannot work without a corresponding revenue and/or Debts, Aides and Grants, etcetera (this is the law and it cannot be circumvented).

(TO BE CONTINUED)

•Dr Nwaodu Lawrence, a Development Economist, writes from Owerri, Imo State.

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