OTTI PRESENTS N750B 2025 BUDGET TO STATE ASSEMBLY
Read Time:3 Minute, 0 Second
Otti presents N750 billion 2025 budget to state assembly.
Ikokwu Ogbonnaya, Umuahia
The governor of Abia State, Alex Otti, has submitted a N750 billion budget for the 2025 fiscal year to the state House of Assembly for review and approval.
A total of N611.7 billion, or 82% of the budget, is allocated to capital expenditures, and N138.6 billion, or 18%, is allocated to recurring expenditures. This amount is around 30% more than the N523 billion allocated in the 2024 budget.
Presenting the budget estimate tagged “Budget of Sustained Momentum”, at the chambers of the state House of 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.
Otti, who claimed to have been on pace to live up to the public’s expectations, outlined a number of accomplishments from the fiscal year 2024 and promised more in the year to come.
He revealed that N13 billion has been set aside for the establishment of agro-industrial processing zones in three local government areas of the state, namely Bende, Ukwa, and Umunneochi. Additionally, he has budgeted N55 billion for various ongoing and new road projects in the 2025 fiscal year that spans the 17 LGAs. He also mentioned that plans have been made to build 170 kilometers of rural roads throughout the state’s 17 LGAs, with a goal of 10 kilometers per local government.
According to Otti, the Umuahia Regional Water Scheme has allocated N4 billion for the renovation and reticulation of a 47-kilometer pipeline. The education and health sectors will keep 35% of the funding, with 15% going to the former and 20% to the latter.
He further said, “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.
The governor who said that no Kobo has 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.”
The governor’s budget presentation was praised by the Speaker of the Abia State House of Assembly, Rt. Hon. Emmanuel Emeruwa, who also promised the House’s support for the governor’s objectives in the 2025 budget and stated that it will sustain the state’s infrastructure development.
Happy
0 %
Sad
0 %
Excited
0 %
Sleepy
0 %
Angry
0 %
Surprise
0 %
0
0