Akwa Ibom government has for the first time in seven years failed to sustain a 80:20 ratio in its Capital/Recurrent Expenditure.
The 80:20 expenditure ratio was adopted by the Senator Godswill Akpabio’s administration in 2008 as a deliberate strategy to actualise its uncommon transformation in infrastructural development in the area.
The initiative led to the construction of more than 1,600 km of both federal and state government roads with five concentric flyovers and the execution of more than 6,000 educational, health, water and electricity projects across rural communities under the state inter ministerial direct labour projects.
But paucity of funds occasioned by dwindling derivation funds has meant that the Governor Udom Emmanuel’s administration has to restrategise to accommodate the mandatory recurrent expenses as well as meet the infrastructural needs of the state.
According to the state budget estimate of N426 billion proposed by the Governor to the State Assembly recently N245B would be spent on Capital projects while a huge sum of N181B would be spent on Recurrent expenses.
This would represent a 57:43 ratio, a far cry from the 80:20 ratio adhered to by the Akpabio’s administration which of course was during the boom period of the state.
Analysts have said that though there has been a decline in the revenue accruing to the state as a result of dwindling oil prices, government’s desire to see off outstanding debt obligations including payment of arrears of pensions owed state and local government retirees may also have accounted for this.
Nigerian Pilot reports that a sectoral breakdown of the capital expenditure showed that administration, economic and social sectors would receive N66B, N145B and N25B respectively while regional and law/justice sectors would each get N2.97 and N4.27B.
The proposed recurrent expenditure is made of N52.93B for personnel cost, N40B for overhead costs and N88B for consolidated revenue fund charges.

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