In the 2019 assessment by the World Bank supported FG-SFTAS Program, only 10 state met the criteria for Disbursement linked indicator (DLI) 1.2 on Budget credibility in 2019, meaning that only those 10 States had deviations of less than 25% between their 2019 approved Budget and 2019 actuals expenditures. This is a critical problem that affects the ability of the international Community to rely on the State’s Budget as a planning tool and adequately support the States. The criteria for DLI 1.2 is even stricter in 2021, State must achieve deviation less than 15% between their approved Budget and Actual expenditure to be eligible for the $1m grant for this DLI 1.2 in the SFTAS program.
It is based on this premise that the Commission undertook the performance report to look at the Capital Budget performance of MDAs, their challenges and reasons for poor performances in other to advise the Government on ways to improve where necessary in other to achieve the above goal.
REASONS FOR POOR PERFORMANCE IN 2020 REVISED CAPITAL BUDGET
According to most MDAs, the performance of the 2020 revised budget was very poor as a result of a challenges arising from the impact of Covid-19 pandemic in the State that cut across various critical areas of Revenue generation, human Endeavour such as Health, food security, Education, Social-economic, environmental, security, Etc. These challenges led to the review of the 2020 budget by 24 percent affecting only the capital expenditure and overhead costs.
The Government deemed it necessary to review the budget to meet up with physical realities, but as the case may be those realities were not met because, only 19,263,192,255.42 which is 25% of 76,370,800,260 of the Capital Expenditure fund was expended for capital projects in the state. Below is a summary of MDAs performances.