The Delta State Ministry of Economic Planning has said that the State Government is considering N936 billion as the proposed budget for the 2025 fiscal year, saying the fiscal estimates also eye a 30% increase compared to the N725 billion budget size proposed and passed for the year 2024.
Sonny Ekedeyan, Commissioner for Economic Planning and Chairman, Budget Defence Committee, who made the statement at the commencement of the Ministries, Departments and Agencies, MDAs budget defence exercise in Asaba, the State Capital, noted that the increase in the fiscal estimates does not necessarily translate to more purchasing power due to the declining value of money.
“Even though the budget appears larger, the amount of goods and services it can procure is less than what it could have bought a year ago. This is one of the key factors we considered while drafting this budget.
“This budget defence is part of the state commitment to open governance protocols and an annual tradition aimed at ensuring.transparency and accountability”, he said.
Ekedayen noted that the last 12 months had seen significant shifts in the economy, driven by factors such as exchange rate liberalization and the removal of fuel subsidies. “What we are experiencing today is a combination of these economic changes,” he explained.
“When President Bola Tinubu assumed office, the country’s revenue-to-debt ratio stood at around 97%, meaning that nearly all the revenue generated was used to service debts. Our earnings were not substantial yet our debt profile was considerable. Preparing the 2025 budget involved considering these economic realities”, he added.
Read also: Delta Assembly passes N725bn budget 2024 fiscal year
On the approach used in crafting the 2025 budget, he said, “We are not magicians, and given the unpredictable nature of the economy, making long-term projections has been challenging. To ensure stability, we based the 2025 budget on actual revenue receipts from June 2024 to date. Our aim was to use realistic and sustainable figures to avoid any financial setbacks.
“Whatever it is that comes in by way of revenue can’t or can be sustained is what we are using to base our budget and as such we are able to come up with budget envelope of about N936 billion.”
According to him, the essence of the budget defence was to provide Ministries, Departments and Agencies (MDAs) with the opportunity to pitch and defend their budget proposals, outlining their planned programs and the financial resources they require for the coming year.”
He said that the process involves a thorough examination of the proposed budgets, scrutinizing the practicality of each agency’s plan.
Ekedayen however noted that the allocated funds would be utilised efficiently based on the proposals presented by the MDAs.
He urged all participants to approach the budget process with honesty and diligence. “This is a very serious process. We must be as transparent and judicious as possible because the budget, though increased, is still insufficient to meet all the needs of our people.
“We are all working for the core objective, that is, the vision of the Governor and there is no small ministry or big ministry. I want us to be as honest as possible and then try as be as judicious to as we can because this is still not enough to service the needs of our people, the cost of construction and infrastructure has gone up because of high poverty level, there is heavy reliance on government for alot of things and the government can only do so much.”
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