Do you know that in the Kaduna State 2023 approved budget our Foreign Loan and Interest Repayment is N25.8 billion; while the Domestic Loan and Interest Repayment is N9.6 billion.
This brings our total Debt Service for this year to N35.4 billion. That is 80.8% of Overhead cost of N43.8 billion; 63.1% of Personnel cost of N56.2 billion; and 26.1% of Recurrent Total of N135.5 billion.
Furthermore, it is 39.7% of Internally Generated Revenue (IGR) of N89.3 billion; 18.1% of total revenue of N196.3 billion; and 19.7% of Capital Account (minus Recurrent Budget Surplus/Deficit) of N180.2 billion
Also, in the 2023 approved budget, the State government is proposing to collect an External Loans of N61.7 billion. This should be considered alongside the Debt Management Office (DMO) figures for the State.
According to the DMO, our Foreign Loan, as at 30th September, 2022, is $586.8 million; while our Domestic Loan, as at 30th June, 2022, was N86.9 billion.
Debt as a concept is not bad and in the most part inevitable for any government. This is evident as most of the developed countries we look up to are highly indebted.
However, three things are key and which we should look out for: quality of utilization, value for money in terms of return on investment and capacity to service or payback.
Therefore, as you are busy supporting, defending or undecided about the candidate to support in the forthcoming elections, do not forget that governance is ongoing. The government is currently carrying out services with public funds.
Do not be carried away with the emotions and noise of the campaigns and forget to engage, ask the right questions and hold the incumbent government accountable. It is your right, because it is your mandate.
More importantly, ensure that the candidates you are either supporting or defending or even undecided about is capacitated and equipped, before giving him your mandate, to raise enough revenue to service our rising debt, settle our liabilities, pay for the increasing recurrent and capital expenditures of the State.
Yusuf Ishaku Goje
Active Citizen
