Analysis of Internally Generated Revenue and Capital Expenditure Utilization in Cross River State, Nigeria

Abstract

The study analyzed the relationship between internally generated revenue and capital expenditure utilization in Cross River State, Nigeria from 2007 to 2015. Secondary data sought from Cross River State budget office, internal revenue service and ministry of finance were used for the study. Descriptive statistics were used to analyze the relationship between internally generated revenue and capital expenditure utilization in Cross River State. Findings from the study indicate that increase in government expenditure without corresponding revenue will widen the budget deficit. It is recommended from the findings that; the Cross River State government should increase the size of its internally generated revenue in order to accommodate the capital expenditure of the state. The state government should diversify its economy and explore especially the non oil minerals sector of the state economy so as to correct the disparity between revenue and expenditure and reduce the attendant budget deficit. Expenditure reforms analysis should be considered vis-à-vis taxes and all other revenues sources. This will help set targets for revenue mobilization and utilization as well as expenditure spreading over the entire state economy. The Cross River State government in order to be sustainable in its development strive must develop the internally generated revenue base, promote fiscal prudence in the management of its resources, enhance infrastructures, eschew corruption and unsustainable spending as well as sustain it capital votes. The Cross River State government should continue to increase its aggregate revenue mostly from internally generated revenue base, since only revenue from internal sources can boost the state income given the dwindling allocations from the federation account. The government should go a step further in intensifying efforts at developing other sources of revenue in order to insulate the economy from the volatility associated with the oil revenues

Keywords: Budget, Capital Expenditure, Cross River State, Internally Generated Revenue

Article Review Status: Published

Pages: 9-18 (Download PDF)

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