Abia State Governor Presents Ambitious N567.2 Billion ‘Budget of New Beginning’ for 2024

Abia State Governor Proposes N567.2 Billion ‘Budget of New Beginning’ for 2024

Governor Alex Otti of Abia State presented the state House of Assembly with a budget estimate of N567.2 billion for the fiscal year 2024, emphasizing a transformative vision encapsulated in the “Budget of New Beginning.”

Strategic Allocation of Funds:

The 2024 budget proposal outlines strategic objectives, focusing on the expansion of public infrastructure and enhanced service delivery in the social sector.

Notably, over 20% and 15% of the budget are allocated to education and health, respectively.

Shift Towards Capital Expenditure:

Governor Otti highlights a significant shift in spending direction. While the 2023 budget allocated 53% to capital expenditure, the goal for 2024 is to allocate a substantial 84% to capital projects. Recurrent expenditure is expected to be limited to 16%, compared to 47% in the previous year.

Deficit Financing and Borrowing Plan:

To address a deficit of N401,162,378,914, Governor Otti proposes new borrowings, estimating N385,271,027,214.

Approximately 50% of this borrowing will be sourced externally, with the remainder sourced locally. The governor asserts that these borrowings will be dedicated to capital development projects, particularly in infrastructure, education, and healthcare.

Revenue Sources and Fiscal Responsibility:

The estimated total revenue for the fiscal year 2024 is N166,077,717,058, comprising income from Internal Generated Revenue (IGR), Federation Accounts Allocation Committee, grants from multilateral organizations, and other revenue sources.

Governor Otti emphasizes that all borrowing will be channeled into projects with substantial economic impacts.

Performance Review and Optimistic Projections:

Governor Otti reflects on the successful implementation of the N160.5 billion budget for 2023 and expresses optimism about surpassing the 60% budget implementation achieved in 2022. The 2024 budget is seen as a crucial step towards consolidating gains made in the previous cycle.

Positive Legislative Reception:

In response to the budget presentation, Speaker Emmanuel Emeruwa describes it as “robust and capital intensive.”

He acknowledges its historic significance as the first-time Abia State has budgeted such a substantial amount. The Speaker assures a favorable consideration of the bill by the House of Assembly to facilitate swift implementation and positive changes in the state.