Governor Alex Otti of Abia on Tuesday presented the 2024 Appropriation Bill, totalling N567.2 billion, with proposed new borrowings of N385.3 billion to the state House of Assembly for deliberation and approval.
In his address, Otti said that the 2024 budget Christened “Budget of New Beginning” surpassed the 2023 budget estimate by over N400 billion, with 84% allocated to capital expenditure and 16% to recurrent expenditure.
The state’s revenue for 2024 was estimated at N166 billion which will be generated through grants from multilateral organisations, Internally Generated Revenue (IGR), allocation from the federal government and other income sources.
- He said, “We plan to finance the deficit of over N401 billion partly by new borrowings, estimated at N385.3 billion. It must at this point be stated that all borrowings would be committed strictly to capital projects with direct impact on the economy of the state, especially roads, schools and medical facilities,”
Allocation to critical sectors
Gov. Otti also emphasized the government’s commitment to allocate over 20% to education and 15% to health in the overall budget.
Additionally, he outlined the state’s proposal to allocate 44.76% to the economic sector, with specific percentages for works, land and housing, agriculture, and finance: 16.97%, 9.9%, 5.12%, and 5.23%, respectively.
- He stated, “The 2024 budget targets the expansion of public infrastructure, in line with the government’s new development agenda, scaling up access and quality service delivery in the social sector,”
Establishment of a monitoring system
Governor Otti revealed the establishment of a monitoring system enabling citizens and stakeholders to track fund utilization and assess the impact of capital projects from initiation to completion. This approach, he emphasized, ensures transparency and prudence, with valuable citizen feedback influencing governmental decisions.
He affirmed a commitment to a pay raise for civil servants, aligning with current economic conditions, as reflected in the 2024 budget, underscoring the ongoing priority placed on workers’ welfare.
What you should know
The Abia state 2024 budget of N567.2 billion is higher than the state’s budget of 2023 with around N407 billion. This represents an increase of 353% in one year.
However, the increase in the budget proposal does not denote an increase in the government’s revenue as the budget has a deficit of around N400 billion which the state hopes to finance with local and external borrowings.
This would be Gov. Otti’s administration’s first budget since his election in March 2023 and subsequent inauguration in May.
