10/12/2024
Ụmụ nnem Ndị Abia,
Today, I had the honour of presenting the 2025 Budget to the Abia State House of Assembly. The budget, titled "Budget of Sustained Momentum," underscores our unwavering commitment to advancing Abia's development. The proposed budget for the 2025 fiscal year amounts to Seven hundred and fifty billion, two hundred and eighty two million, two hundred thousand Naira only (₦750,282,200,000).
This figure represents a 30% increase from the 2024 budget, reflecting our ambitious goals. We have carefully considered significant economic challenges such as inflation and exchange rate volatility, which have significantly impacted our fiscal strategies.
For the 2025 fiscal year, ₦611.7 billion, or 82% of the total budget, will be allocated to capital projects. The investment aims to drive the long-term socioeconomic transformation of the state, building on the progress made over the past 18 months. Additionally, ₦138.6 billion, or 18% of the budget, will be dedicated to recurrent expenditures, covering personnel costs, social benefits, overheads, and debt servicing.
As in the previous year, the health and education sectors will receive approximately 35% of the budget. Specifically, 15% will be allocated to the health sector, 14.63% to basic and secondary education, and 5.42% to tertiary education.
The draft budget is based on slightly optimistic projections, using 2024 figures as a baseline. We anticipate a 213% increase in the state's internally generated revenue (IGR) to ₦100.6 billion, a 96% rise in statutory allocations to ₦183.4 billion, a 55% increase in grants to ₦25.5 billion, and a 35% rise in VAT to ₦55.1 billion. The remaining ₦364.1 billion, or 51% of the budget, will be financed through domestic and multilateral channels. Importantly, as with last year, we will not borrow to finance recurrent expenditures. Borrowing will only occur when necessary and will be used for projects that can repay the loans. We are pleased to report that no funds were borrowed in the 2024 fiscal year, and we have taken steps to repay old debts, maintaining zero indebtedness to contractors.
At this juncture, I encourage you to read the full text of the budget speech available on our website: https://www.alexotti.com/sustaining-the-momentum/ and share your feedback and suggestions with us.
Thank you.
