Stephen Ukandu, Umuahia
Abia State is to spend N750 billion in 2025 fiscal year.
This is contained in the Appropriation Bill of the state presented to the State House of Assembly, Umuahia, onTuesday by Governor Alex Otti.
The 2025 budget outlay represents 30% increase in the 2024 appropriation of N523 billion.
Analysis of the budget shows that N611.7 billion, representing 82% is for capital expenditure while N138.6 billion representing 18% is for recurrent expenditure.
Presenting the budget on the floor of the State House of Assembly, Otti said his administration took into account, “major economic headwinds such as inflation and exchange rate instability which have dealt harshly on fiscal plans.”
He tagged the budget, “Budget of Sustained Momentum,” saying it is meant to further meet the expectations of the people.
Otti said no loan was borrowed to finance the 2024 budget, but explained that the state would borrow, if necessary, in the 2025 budget.
Education still got 20% of the budget outlay while health retains 15% allocated to it in 2024.
He 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.
The Governor said he budgeted N55 billion for various on-going and new road projects in the 2025 financial year which cuts across the 17 LGAs.
Otti said 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.
He budgeted N4 billion for the revamping and reticulation of 47km pipeline for the Umuahia Regional Water Scheme.
“The draft of 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 at 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 N100.6 billion, a 96% rise in statutory allocation to N183.4 billion, 55% increase in grants to N25.5 billion and 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.
“Mr Speaker, I am pleased to report that for the 2024 fiscal year, no funds has been borrowed till 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 absolutely necessary and shall be deployed for the execution of projects that will ultimately repay the loans.”
Responding, the Speaker Abia State House of Assembly, Rt. Hon. Emmanuel Emeruwa, thankedvthe Governor for the budget and promised that the House will not hesitate to consider it timeously.
He promised continued working relationship with the Executive for the development of the state.
