Abia State Governor, Alex Otti has presented the 2024 Budget Estimate of N567, 240,0 95, 972 to the state House of Assembly, saying the key distinction is in the direction of spending
The estimate entitled “A budget of new beginning” is over 250 per cent higher than the 2023 budget of N160 billion he inherited from the immediate past administration of Dr Okezie Ikpeazu.
“The above figure, in nominal terms, represents more than N400 billion rise from the 2023 estimate of N160.5 billion although when adjusted for inflation and fall in the value of the naira, the reality becomes starkly different,” he said.
He said while the 2023 projection allocated 53 per cent of the entire budget for capital expenditure, the 2024 proposes to spend 84 per cent and to commit 16 per cent to recurrent as against 47 per cent in the former.
He added that of the proposed figure, government’s estimated total revenue is N166,077,717,058 including earnings from IGR, FAAC, grants from multinational organisations and income from other sources.
“We plan to finance the deficit of N401, 162, 378, 914 partly by new borrowings estimated at N385, 271, 027, 214.
50 per cent of this borrowing will be sourced externally, whilst the balance will be procured domestically.”
Otti noted that it must be stated that all borrowings in the year would be committed strictly to capital development projects with direct impact on the economy of the state, especially roads, schools and medical facilities.
He said, “The projection is that the impact of these projects on the general economy in the medium to long term would generate the sufficient returns that would enable the state meet her obligation to the creditors smoothly and ultimately pay off the loans in due course.”
