Surviving being broke

In the most part people would conclude that the person hasn’t spent money wisely. This in a nutshell is the situation in which the majority of our State Governors find themselves purportedly making them unable to pay their workers salaries.They have no right to either expect sympathy from the general public or to demand that […]

In the most part people would conclude that the person hasn’t spent money wisely. This in a nutshell is the situation in which the majority of our State Governors find themselves purportedly making them unable to pay their workers salaries.
They have no right to either expect sympathy from the general public or to demand that citizens make sacrifices. Being broke is very different from being poor. Poverty is a condition in which for one reason or another resources to improve the financial situation aren’t available. All religions place a moral obligation upon their adherents to assist the poor. Being broke however is different. It isn’t a condition but a situation in which resources are available but aren’t being utilized well. The fight for State creation in Nigeria has always been about the benefits politicians derive rather than benefits to citizens and the current financial crisis amongst State governments is a reflection of how little our Governors have really cared about the welfare of their citizens.
The situation is simply the repercussions of a culmination of bad decisions on their part. The fall in revenue occasioned by the global slump in oil prices is merely an excuse. The problem didn’t start yesterday. For decades States have lived above their means and there are dire consequences for living outside of your means. Although it’s a disaster that there is such a backlog of unpaid salaries, the situation could be an opportunity for progress if handled correctly. Being broke should give Governors a completely different perspective on matters such as cash flow, debts and financial well being and make it a lot easier for them to focus on what is really important.
The idea of responsible governance is to make sure all important obligations such as salaries are met, and projects for self-promotion set aside. Governors must understand that there is a big difference between looking as if you have money and actually having it. After years of extravagant lifestyles and mismanaging excess income they are being forced to accept that public administration is about managing scarce resources, not spending as you please. Governors’ fondness for spending on what the State can’t afford has lead to their inability to pay for important things. Their job requires awareness, ingenuity, creativeness, adaptability and the ability to find unique solutions to problems. Those Governors who have allowed their States to become broke have allowed money control them rather than the other way around.
They failed to appreciate that money or the spending of money doesn’t equate with their personal value. They don’t understand that money neither defines who they are, nor invests them with any real power. Their injudicious use of money to feel powerful is a pitiable way of seeking external validation in the absence of any internal worth. Governors must learn that getting the financial situation under control is about more than money, it’s also about self-respect and finding a correct balance in public administration. They must learn to recognize what is referred to as “socially-imposed deprivation” which makes individuals compare themselves to others and feel bad about not having the latest unnecessary designer item or gadget.
They must learn to strike the balance between what they want and what the State needs. Squandering funds on new secretariats or government houses is taboo. The solution to the financial crisis lies in breaking expensive habits. Governors must not become enamoured with IGR gimmicks that further impoverish the public who are offended by the excessive lifestyles of political office holders. They must learn to be frugal and stop spending on unnecessary expenses which could be prevented by better organizational skills. Incredulously despite being in serious debt, State Governments never seem to get a bargain as everything supplied to them costs at least three times the market price! They must become “street wise” in their expenditure by adhering to proper routines and procedures for spending money rather than circumventing rules and regulations.
The truth is that only the Governors can solve the problems of their States and a Federal government bailout isn’t a good idea. It doesn’t make good financial sense to deplete emergency savings or long term investments because of problems caused by profligacy. State governments should not be allowed to mortgage the future of our children by borrowing more money. It’s neither clever nor sensible to give a false sense of financial security by obtaining multiple loans. As a short term palliative measure banks should be instructed to give interest free “overdrafts” to civil servants who are owed salaries.  The truth about being broke is that changes must be made in order to improve the financial situation especially in terms of reducing expenses.
It isn’t the end of the world and if the right strategy and mindset are adopted then it is possible to get through the bad times. It’s vital for success in life that both individuals and governments learn to live below their means. The first thing is to ensure it doesn’t continue by making proper budgets and learning to stick to them. The annual ritual of meaningless budgets which Governors assent to but never implement must end. The overall idea of a budget is that government should be attempting to cut back in everything. To survive being broke, State Governments must cut their coats according to their sizes, and avoid continuously incurring treasury depleting debts.