The Sustainable Interaction of Revenue and Budget Performance in Anambra State

This study examines the sustainability of the relationship between revenue sources and budget performance in Anambra State from 2013 to 2023, examining the time series of budget performance, licenses, and fines. The secondary sources of data include Anambra State Government Budgets, Anambra State Government Reports of the Accountant General with Financial Statements, and Anambra State Government Budget Performance Reports. The results, derived from a linear regression model, indicate that past budget performance does not predict future budget performance and this implies budgeting volatility. The short-run effect of license receipts on budget performance is negative but the lagged value indicates a weak positive but statistically insignificant effect. The short-run effect of fines on budget performance is negative but the lagged effect is positive and statistically significant, suggesting that fines have a positive lagged impact on budget performance. In general, the results identify the challenge of obtaining sustainable and stable budget realization within Anambra State and indicate the necessity for better fiscal management procedures and better coordination between revenues and implementation of the budget.