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Governor Alex Otti of Abia State has unveiled a budget estimate of N567.2 billion for the fiscal year 2024, naming it the "Budget of New Beginning." The proposal, presented on Tuesday to the state House of Assembly, emphasizes a strategic shift in spending priorities.
Otti outlined that the 2024 budget aims to focus on expanding public infrastructure and enhancing service delivery in the social sector, with a particular emphasis on education and health. Notably, the budget allocates over 20% and 15% of the aggregate spending to education and health, respectively.
The significant distinction in the 2024 budget lies in the allocation of spending. While the 2023 projection allocated 53% for capital expenditure, the target for the 2024 fiscal year is to allocate 84% of total expenditure to capital projects and 16% to recurrent expenditure, marking a substantial increase from the 2023 estimates.
The governor provided insight into the estimated total revenue of N166,077,717,058, which includes income from internally generated revenue (IGR), allocations from the Federation Accounts, grants from multilateral organizations, and other revenue sources. To finance the deficit of N401,162,378,914, he plans to leverage new borrowings, with approximately 50% sourced externally and the remainder locally.
He emphasized that all borrowings in the 2024 fiscal year will be strictly dedicated to capital development projects, focusing on critical areas such as roads, schools, and medical facilities.
He assured that these projects would generate sufficient returns in the medium to long term to meet the state's obligations to creditors and eventually pay off the loans.
Reflecting on the successful implementation of the 2023 budget, Otti expressed optimism that the state would surpass the 60% budget implementation mark achieved in 2022. The Speaker of the House, Emmanuel Emeruwa, described the budget as "robust and capital-intensive," highlighting its potential to enhance the economy and improve the lives of residents. He assured the governor that the House of Assembly would consider the bill favorably and promptly to ensure the timely commencement of impactful projects in the state.
