Anambra State Governor, Prof. Charles Chukwuma Soludo, has presented a budget proposal of N606,991,849,118bn for the 2025 fiscal year in the state.
Governor Soludo made the presentation at the hallowed chamber of the State House of Assembly on Tuesday, November 19, where he also revealed that the budget, tagged “Changing Gears 2.0” also represents a 48% increase compared to the state’s 2024 budget of N410bn.
According to the Governor, in the 2025 appropriation bill, recurrent expenditures account for about N140bn (representing about 23% of the total budget) with about 45% year-on-year growth; while the capital expenditures account for about N468bn (representing 77% of the total budget), with about 49% year-on-year growth. This, he said, was also the same ratio in the 2024 budget.
Continuing, Governor Soludo explained that budget deficit projection for the 2025 fiscal year is about N148.3bn (representing about 24% of the total budget), which (like in the 2024 budget) is expected to be funded through revenue growth or borrowing from financial institutions. The Governor, however, noted that, both in 2023 and in 2024, his administration did not borrow to fund budget despite the fact that the two budgets contained significant deficit projection.
Similarly, the Governor noted that his administration may still not bored to fund the projected deficit in the 2025 budget, depending on the execution.
Comparably speaking, Governor Soludo also revealed that the education sector has the highest percentage increase in the 2025 budget, with over over 101.4% when compared with the allocations of the 2024 budget.
His words: “Relative to 2024, several key sectors are seeing significant increases in the proposed budget. In the Administrative sector, we have an increase of about 45.5%. The Economic sector which has humongous infrastructure and economic transformation has about 40.1%; the Judiciary by about 51.3; the Social Sector, by 82.7%; the Education sector, by 101.4%; the Health sector, by 57.1%; and Infrastructure and Investment, by 39%… It is not surprising that education is the one that has more than a 100% increase.”
The Governor also reassured to prioritize access to quality education, infrastructure, youth empowerment, ICT, agriculture, among others in 2025.
With references to some past years’ budgets in the state and the inflation rate in those years, Governor Soludo, who noted that this year’s budget amounts to a mere sum of $357m, acknowledged that the inflation rates and expenditures have continued to increase, while revenues have not increased proportionately in nominal or real term, thereby constituting a major challenge in budgetary execution.
“The full document is available for your review. However, I would like to point out that the size of the budget is relatively small—in real terms (purchasing power) and even in US dollars, amounting to $357 million—when compared to ACTUAL EXPENDITURES as per audited accounts in previous years (2008: $517 million; 2013: $1.1 billion; 2014: $1.2 billion; 2015: $685 million and 2021: $329 million).
“What is before you are budget estimates, and even if we execute it 100%, it will still be a fraction of what was spent in some years past,” the Governor stated.
He, however, assured that his government is not complaining or relenting, but must deliver dividends of democracy to the people, despite all the constraints. With the revenue projection of about N5bn monthly in 2025, the Governor also reiterated his administration’s commitment to doing more with less.
While recounting the various achievements so far recorded in various sectors of the State, the Governor also appreciated the various individuals and groups who contributed in one way or the other towards making that a reality.
Acknowledging that 2025 is an election year in Anambra State, Governor Soludo declared that his administration would intensely and intentionally continue focusing on execution of its multi-faceted agenda with a deadline, as according to him, politician worry only about elections, while statesmen worry about the next generations.
“Let us join hands today, and as we look ahead to 2025, let us fully embrace the idea that we can and will achieve our goals together. The journey toward progress has only just begun, and I am excited to join hands with you to witness the remarkable transformation we can make as a united force. May Anambra State continue to win!” the Governor concluded.
Earlier in a remark, the Speaker of the House, Rt. Hon. Somtochukwu Udeze, who welcomed the Governor on behalf of the House, appreciated him for what he described as the massive transformative projects going on in the state; even as he also assured that the draft budget would receive expeditious consideration.