“We Have Resisted Temptation To Borrow” – Soludo,   As He Presented N607b 2025 Budget

By Suleiman Anyalewechi

The Anambra State Governor is to spend over N606 billion in the 2025 fiscal year.

This is even as the State Governor insisted that his administration has never explored borrowing in its financing of the budgets since coming on board three years ago.

The appropriation estimate which represents about 48 percent increase on the little over N410 billion for the outgoing year 2024, was presented to  the State House of  Assembly on Tuesday, November 19, 2024 by Governor  Charles Soludo.

The Governor explained that a total of N467.5 billion, representing 77% of the budget estimate will be for capital expenditure, while N139.5 billion representing 23 percent of the appropriation package  will be for  recurrent    matters l.

Infrastructure, and economic transformation as well as human capital development received the highest sectoral allocation of about 70% of the total budget estimate.

According to Governor Soludo, the budget deficit of N148 .3b, just as in the case of the outgoing 2024 fiscal year, is expected to be funded through revenue growth  or borrowing from financial institutions.

“So far, in both 2023 and 2024, we did not borrow to finance the budget deficits. Depending on the execution in 2025, we may still not borrow to fund the deficit.

Relative to 2024, several key sectors are seeing significant increases: the administrative sector by 45.5%: the Economic sector by 40.1% ; the judiciary sector by 51.3%; the social sector by 82.7% ; Education by 101.4 % ; Health by 57 .1% and infrastructure investment by 38.9.%”, Governor Soludo noted.

The Governor stated that in the 2025 estimate, the State will be building upon its iconic projects, initiated in 2024 while at the same introducing new ones.

Infrastructure and economic transformation, as well as human capital development, he informed, remain the kernel of the administration.

To this end ,about 70 percent of the entire budget estimate has been cumulatively allocated to the sectors, he stated.

Governor Soludo noted further that in the 2025 fiscal year, the State will be progressing the development of three new cities,namely Awka 2.0 ,Onitsha 2.0.and new Industrial City .

“The Anambra Mixed-Use Industrial City Master Plan and the railway master plan/feasibility study have been completed.

“Afreximbank and AFDB remain committed to supporting the development of the Industrial City .We will continue to enhance the Ease of Doing Business in Anambra to ensure the state becomes the preferred destination for investors”, he stated .

The Governor, however, lamented that the harsh economic situation in the country impacted negatively on the overall performance of the 2024 budget.

But despite the obvious challenges, he informed that the State under his watch has so far resisted the urge to try the borrowing option .

” As you are aware, the general macro-economic conditions under which we had to implement the 2024 budget have been challenging, especially with the immediate consequences of the courageous removal of fuel subsidy and the unification of the exchange rates .

“Inflation has continued in double digits, with significant pressures on costs of living and costs of governance. Our IGR has been grossly underperforming and as of October, 2024, budget performance stood at about 50% pro rata, and we still have resisted the temptation to borrow”, Soludo asserted.