Fiscal Sustainability and Risk Management in Public Sector Budgeting in Delta State

Abstract

The fiscal sustainability and risk management landscape in Delta State is of paramount importance for ensuring economic stability and long-term growth. This study investigates the current state of fiscal sustainability and risk management in the Delta State public sector, with a focus on factors such as revenue volatility, budget deficits, public debt levels, and the effectiveness of existing risk management frameworks. Through a comprehensive review of literature, empirical data analysis, and hypothesis testing, the study provides valuable insights into the challenges, opportunities, and strategies for enhancing fiscal governance and resilience to external shocks. Demographic information and questionnaire responses from 90 participants were analyzed to assess stakeholders' perceptions and experiences regarding fiscal sustainability and risk management practices. The findings reveal a mixed outlook, with varying levels of satisfaction and dissatisfaction regarding the effectiveness of fiscal policies and risk mitigation efforts. While some stakeholders perceive the existing frameworks as robust and impactful, others highlight institutional weaknesses, policy inconsistencies, and governance issues as key barriers to achieving fiscal sustainability. The study also identifies evidence-based recommendations and policy interventions aimed at strengthening fiscal governance, enhancing risk management practices, and promoting long-term economic stability. These recommendations include strengthening institutional capacity, improving transparency and accountability, enhancing revenue mobilization efforts, and prioritizing expenditure management. Overall, the study underscores the importance of proactive measures to address the identified challenges and implement targeted interventions to enhance fiscal sustainability and resilience. By fostering collaboration between government agencies, private sector stakeholders, and civil society organizations, Delta State can build a more resilient fiscal framework capable of weathering external shocks and promoting sustainable economic development in the years to come.