According to a report released by the Auditor-General of Osun State, Kolapo Idris, a detailed analysis of the state’s fiscal strategies has been provided.
The Osun State Government’s 2023 financial audit has revealed a staggering accumulation of loans and borrowings, bringing the state's total debt to over N336billion.
According to a report released by the Auditor-General of Osun State, Kolapo Idris, a detailed analysis of the state’s fiscal strategies has been provided.
The audit disclosed that domestic debts include a salary bailout of N21.6 billion, restructured commercial bank loans of N73.9 billion, and a Federal Government intervention fund worth N18.4 billion.
Meanwhile, on the international front, the state’s external debt stands at N78.5 billion, stating its heavy reliance on borrowed funds.
Further examination of loans managed by the Domestic Debt Management Office (DMO) reveals additional liabilities.
These include undisclosed loans (Note 44) totalling N114 billion, a budget support facility of N17.2 billion, an Excess Crude Account (ECA) facility of N9 billion, and infrastructure loans amounting to N4.3 billion, pushing DMO-managed domestic loans to N144.6 billion.
Also, the state's public debt charges for 2023 amounted to N16.73 billion, falling short by over N3 billion from the N19.85 billion that was initially budgeted.
The variance of N3.12 billion primarily resulted from lower-than-expected domestic interest and principal payments on treasury bills and long-term borrowings.
Meanwhile, domestic interest payments totalled N1.57 billion, below the budgeted N2.38 billion, while principal payments amounted to N15.15 billion, under budget by N2.33 billion.
However, the state’s travel and transport expenses totalled N4.38 billion, reflecting a minor shortfall of N253.7 million compared to the estimated N4.63 billion.
