From CHARLES ONYEKWERE
Abia State governor, Alex Otti has presented a budget proposal of N750billion for 2025 to the House of Assembly for consideration.
A total sum of N611.7 billion, representing 82 percent of the budget is for capital expenditure and N138.6billion representing 18 percent of the budget is for recurrent expenditure.
The figure represents about a 30 percent increase in the 2024 budget of N523billion.
Presenting the estimate tagged ‘Budget of Sustained Momentum’ at the chambers of the Assembly, Otti said his government took into account major economic headwinds such as inflation and exchange rate instability which have dealt harshly with fiscal plans.
The governor, who said he had been on track to meet up with the expectations of the people, highlighted various achievements made within the 2024 fiscal year and assured them of more in the coming year.
The gover disclosed that he had earmarked N13 billion for the setting up of agro-industrial processing zones in three local government areas of the state, namely Bende, Ukwa and Umunneochi, and budgeted N55billion for various ongoing and new road projects in the 2025 financial year which cuts across the 17 LGAs, adding that provisions had been made for the construction of 170 kilometres of rural roads across the 17 LGAs of the state, with a target of 10 kilometres per local government.
According to him, N4billion has been budgeted for the revamping and reticulation of a 47km pipeline for the Umuahia Regional Water Scheme while the health and education sectors maintain 35 percent of the budgetary outlay with 15 percent going to the health sector and 20 to education.
“The draft of the 2025 budget has been comprehensively put together to capture the most important development priorities of our people.
“This budget has been prepared with the active input of Abians who participated in the various citizens’ engagement sessions put together by the State Ministry of Budget and Planning to share their expectations as individuals and groups.
“We project an increase in the state’s internally generated revenue (IGR) collection by 213% to N100.6bn, a 96% rise in statutory allocation to N183.4 lbn, a 55% increase in grants to N25.5 bn and a 35% rise in VAT to N55.1 billion. We shall finance the balance of N364.1 billion, representing about 51% of the total envelope through borrowing from domestic and multilateral channels,” he said.
The governor, who said no kobo had been borrowed so far, assured that the government would borrow when necessary to finance projects.
“This administration, as I had earlier mentioned, has shown great discipline in the management of our collective resources. We shall do better in the coming year to create an all-inclusive growth model.
“Mr Speaker, I am pleased to report that for the 2024 fiscal year, no funds have been borrowed to date but instead, we have taken steps to pay off old debts, while maintaining zero indebtedness to contractors.
“I may have to add at this point, as I did last year, that we shall not borrow a penny to finance recurrent expenditures. All borrowing shall happen only when necessary and shall be deployed for the execution of projects that will ultimately repay the loans.”
Responding, Speaker Emmanuel Emeruwa appreciated the governor’s budget presentation which he said would sustain the infrastructural development of the state among others, assured of the support of the House towards achieving his goals in the 2025 budget.
