I did I do not know what YOU mean by "low income economy" or is there a consensus on what that means?.
I am not sure what difference that makes to the scenario I painted I could ask you did you see item 1-4 I posted. I'd rather not play games   
Anyway what is the evidence base for the low income economy claim. Is it your opinion or do you have any evidence you care to share??
We are talking of Oyo state here so if you say or mean that it is a low income economy the I'm afraid I have to ask you to define the term as its use apears rather arbitrary to me

aribisala0:

I did I do not know what YOU mean by "low income economy" or is there a consensus on what that means?.
I am not sure what difference that makes to the scenario I painted I could ask you did you see item 1-4 I posted. I'd rather not play games   
Anyway what is the evidence base for the low income economy claim. Is it your opinion or do you have any evidence you care to share??
We are talking of Oyo state here so if you say or mean that it is a low income economy the I'm afraid I have to ask you to define the term as its use apears rather arbitrary to me

Economies are classified in to low, middle or high income economies. OK? (you can google for more info. (world bank classification e.t.c)

Our "beloved" Nigeria is a low income economy.http://www.oecd.org/dataoecd/15/29/35876528.pdf   Oyo state is one of the 36 states of Nigeria.

I hope you are not mischievious with your back and forth 

I really am not sure what you mean by did i read low economy.  I could ask; "did you read where i stated that I do not think the proportion should be higher in ALL low income economies  because ZERO or very close to ZERO income  would still be classed as LOW income .
MY point is; in a country that is struggling to pay salaries for the most basic security service should they make a choice not to pay those salaries to satisfy this greater proportion for infrastructure requirement?
Even in so called low income economies there will still be low ,very low and extremely low. Some countries receive up to half of their income as AID and live from hand to mouth really
There are countries that do not develop any significant infrastructure because they are just too poor. As such do we then say to ALL low income economies they MUST still devote a greater proportion of spending to infrastructure?. I thought I made this clear already in my post. Did you see that or just being mischievous
I gave four scenarios to illustrate that there is low and there is LOW and the same rules can't apply. Oyo state with 6 million people and $1 billion a year seems to me like very low rather than just low

^^^ Something tells me you've closed your mind. GOODLUCK.

My mind is always closed to dogma and open to a reasoned argument.
Goodluck to you too.

major drawback of this budget is the deficit financing!

For those arguing about Capital and Recurrent, some expenditure on education can be Capital. Same for health, agriculture etc.

wanaj0:

major drawback of this budget is the deficit financing!

For those arguing about Capital and Recurrent, some expenditure on education can be Capital. Same for health, agriculture etc.

Yes, though capital expenditures can be both on education, health, agriculture etc, the question is, what is the economic benefit of the resulting output from these expenditures? I think that's the argument of some on here; projects based upon tangible and intangible benefits.

Governor Abiola Ajimobi of Oyo State on Tuesday presented a N160.6 billion budget proposal to the state House of Assembly for the 2012 fiscal year.

Tagged ``Budget of Restoration'', the appropriation bill, representing an increase of 8.4 per cent over the 2011 budget, has N72.7 billion which represents 45.3 per cent as recurrent expenditure and N87.9 billion representing 54.7 per cent as capital expenditure.

The governor, at the ceremony witnessed by party leaders, traditional rulers, top government officials and other stakeholders, said the budget was a significant improvement over 76.4 per cent and 23.6 per cent of recurrent and capital expenditure respectively for 2011.

According to him, the 2012 revenue estimate of N110 billion is a decrease of 32.4 per cent compared with the N163 billion approved in the 2011 estimates, stressing that this was meant to truncate the culture of bloated, unrealistic and unrealizable revenue projections that had been the hallmark of the state's fiscal operations as noted earlier.

``Our analyses of budget performance in recent years have shown that the performance is low, this poor performance is acerbated by low spending on capital expenditure.

``No state that focuses on consumptive item can grow, which explains our undesirable state of affairs, which this administration inherited. If we want to break the vicious cycle of under-development, we have to take the bull by the horns to focus on capital expenditure that will be able to secure development that we are all craving for,'' he said.

Oyo State spending about $500 million on recurrent expenses? Really? For what? When do we eliminate the dead-weight so we start investing more of our funds in serious development??

Time

10yrs ago