Business
Experts Hail Wike On Budget …Say Capital Expenditure Is Key To Dev

Experts have commended the Rivers State Governor, Chief Nyesom Wike, for sustaining allocation of lion share of the state’s budget to capital expenditures.
The governor, last year December, presented a budget of over N530 billion with capital expenditure gulping N375 billion, while recurrent expenditure takes N156 billion.
The Tide reports that the governor has been given higher allocation to capital projects since assumption of office in 2015.
An economist and professor of Banking and Finance in the State University, Dele Momodu, said “that is what we have been clamouring for. It will maintain infrastructure and that is key to driving development. “
Momodu said recurrent expenditure depletes government purse and is purely consuming without contributing much to the economy.
While urging for the implementation of the budget to the letter, he also advised that the release of funds should be judicious, so as not to give room for leakages.
“We are hoping that more projects will be executed, especially those that touch the lives of the people directly”, Momodu stressed, while pointing out the need for government to ensure that human capital development is also given attention.
On his part, Friday Udoh of the Institute of Chartered Economists of Nigeria (ICEN) noted that where capital expenditure supersedes recurrent expenditure, it will make the economy more productive.
“The governor is in the right lane because Rivers State is a growing economy, and a growing economy requires more of capital expenditure.
“Capital expenditure will create work and job opportunities due to productive activities”, Udoh maintained.
In a similar vein, a chartered accountant, Gabriel Irabor, submitted that more capital expenditure would generate revenue.
He explained that good infrastructure was capable of attracting investors and businesses to the state.
Irabor further said, “It’s a long term investment in the economy. For instance, if you build more roads and schools, then government will not do such projects in say 30 years time. And also investment in education will lead to human capital development in the future.”
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