A review of the Oyo State budget performance document shows that the state borrowed N62 billion in the first nine months of 2024.
This development is even as the state spent N20.5billion on public debt charges in the same period of time.
Oyo spent 44.4% of its internally generated revenue in the first nine months of 2024 on debt servicing.
Further review shows that the state spent only N2.9 billion on its education, science and technology sector capital needs in the first nine months of 2024 and spent N20 billion on public debt charges.
Only N43.6 million was spent on the state’s health ministry capital needs in the first nine months of 2024, N3.5 million was spent on the rural water and sanitation agency capital needs in the period under review.
Only N59.8 million was spent on rehabilitation/repairs of water facilities. Nothing was spent on rehabilitation/repairs of hospitals/health centres.
The analysis further showed that the state spent N10 billion on rehabilitation/repairs of roads which is just half of what was spent on debt charges. Other developments that suffered include erosion and flood control which took only N200 million.
There has been continued concerns on Overreliance on loans by states to fund their budget.
Large loans has left states with high debt servicing figures which experts say deny citizens of enjoying meaningful developments.
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