Why our 2025 budget went up by 31% — Kano commissioner

Kano State government says it scaled-up the total size of the state`s 2025 financial expenditure, as a result of an anticipated increase in revenue flow from the Federation Account Allocation Committee (FAAC), due to subsidy removal.

Accordingly, the initial budget estimate of the state which total N549 billion, had been increased during a legislative action by the State House of Assembly to about N720 billion, which represents over 31 percent increase.

Musa Suleiman Shanono, the state commissioner for planning and budget made this disclosure, Thursday, during a media briefing on the breakdown of the 2025 approved budget for the state, held at the ministry `s conference room.

“You may wish to recall that, His Excellency, the Executive Governor of Kano State, Engineer Abba Kabiru Yusuf presented the 2025 proposed budget to the Kano State House of Assembly on Friday, 8th November, of last year (2024), with the overall objective of developing the state and improving the well -being of its citizens.

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“The 2025 proposed budget tagged ‘Budget of Hope, Human Capital, and Economic Development’ seeks to further consolidate the state government policies that are being implemented in directing resources and efforts to stimulating human capital and economic growth in the state.

“The proposed budget had a total size of N549, 160, 417,663.00, as presented to the state House of Assembly. The proposal in line with the provision of the law have gone through the processes of scrutinizing it, consultations, and public hearing were also conducted, and the budget passed, n 20th of December, 2024, and assented to by the Governor on 31st December, 2024.

“The 2025 approved budget has a total size of N719,755, 417,663:00, representing an increase of N170,595,000:00, equivalent of 31% over what was initially submitted by His Excellency, to the State House of Assembly.

“The total recurrent expenditure is N262, 670, 660, 562:65, and the total capital expenditure is N 457,084,757,100: 35. The ratio of the recurrent to capital expenditure is 36:64. The budget is higher than 2024 by N282, 417, 104, 875:07 which represented 65 % increase.

“The approved budget is above the State projected available resources as contained in the 2025-2027 Medium Term Expenditure Framework (MTEF) due to improvement of new Sources of Revenue from FAAC as a result of subsidy removal, and other Capital Receipts”, Shanono explained.

Providing insights on the recurrent and capital components of the budget, the commissioner stated that the total approved recurrent revenue for 2025 was over N617 billion, consisting of Nabout 86 billion from internally generated revenue, and over N531 billion expected revenues from the Federation Account Allocation Committee (FAAC), as against the 2024 total recurrent revenue of over N380 billion.

He disclosed that by extension, the 2025 recurrent revenue was higher than that of the immediate past year by over N237 billion, representing an increase of 62.5%. It is equally important to note that the projected IGR is less than that of the year 2024 by about N16 billion, representing 15.8 % decrease.

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While, according to him, the estimated capital receipts for the 2025 stands at about N74 billion, and the Treasury Opening Balance is to the tune of N29 billion.

On measures been taken by state to effectively operationised the budget, Shanono hinted that Governor Abba led administration is working towards prompt releases of money that will ensure that the timelines for each of the projects captured in the budget are executed on time.

In the same vein, he revealed that as part of the measure that will ensure that targets are met, the new ministry of project monitoring, recently established by Governor Abba will be all out to monitor and track the execution of the budget.