Delta State Government, yesterday commenced next year’s Budget Defense exercise, with the Commissioner for Economy Planning, Hon. Sonny Ekedayen, as Chairman of the Exercise.
In his opening remarks, the Commissioner for Economic Planning, hinted that the Budget Defense was part of the Governor Sheriff Oborevwori’s-led State Government commitment to open governance protocols and an annual tradition aimed at ensuring transparency and accountability. Adding that the process involves meticulous vetting of the proposed budgets, scrutinizing the practicality of each MDAs for the coming year.
According to Ekedayen, “The essence of this exercise is to provide 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.
“Today marks the first day of the exercise, and we have reviewed the proposals of about four MDAs. The session has been fruitful and revealing, allowing us to delve deeper into the feasibility and approach of each budget request,”.
On the current economic challenges facing the nation, the Delta State Economy Planning Commissioner said we have been experiencing a combination of economic changes in the last one year that had seen significant shifts in the economy, driven by factors such as exchange rate liberalization and the removal of fuel subsidies.
Ekedayen disclosed that at the inception of President Bola Ahmed Tinubu assumption of office, the country’s revenue-to-debt ratio stood at around 97%, meaning that nearly all the revenue generated was used to service debts. That the nation’s earnings were not substantial, yet our debt profile was considerable. Preparing the 2025 budget involved considering these economic realities.
Clarifying the modalities used in crafting the Delta State 2025 Budget, he said were not magicians, and given the unpredictable nature of the economy, making long-term projections has been challenging. To ensure stability, they based the 2025 budget on actual revenue receipts from June to date. “Our aim was to use realistic and sustainable figures to avoid any financial setbacks.”. Ekedayen added.
He stated that the proposed 2025 budget stands at N936 billion, reflecting a 30% increase from the N725 billion budgeted in 2024. Stressing that the increase does not necessarily translate to more purchasing power due to the declining value of money. Noting that 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.
The Commissioner emphasized that the allocated funds would be utilized efficiently based on the proposals presented by the MDAs, urging 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,” Ekedayen advised.
While acknowledging the rising costs of infrastructure and other essential services, attributing part of the increased demand on the government to the high poverty levels, he noted that “Most of the time, due to the poverty line, there is heavy reliance on the government for a lot of things, and the government cannot do everything. We must keep this in mind and approach this entire process with seriousness and realism”.
The Director General of Asaba Capital Territory Development Agency, Chief Patrick Ukah,
Commissioners for Agriculture, Hon. Val Areyinka Esq., Environment, Hon. Ejiro Jamani
and two others were those that successfully presented their MDAs 2025 proposed Budget Defense Committee.