Delta Proposes N936 Billion as 2025 Budget Estimate

*Debt burden rubbishes revenue

Omon-Julius Onabu in Asaba

Delta State Government has proposed a total of N936 billion as budget estimate for the 2025 fiscal year, saying that it is a realistic projection based on the current volatile financial situation in Nigeria.

The Commissioner for Economic Planning, Mr Sunny Edekayen, disclosed the proposed budget during the opening ceremony of the budget defence by government Ministries, Departments and Agencies (MDAs) at the State Secretariat, Asaba, the state capital.

Edekayen said the proposed figure represented about 30 per cent of the budget for the current year, 2024, which stood at N725 billion.
He admitted that the huge debt burden was greatly undermining the capacity of the state government to make ambitious budget planning for the various programmes of the Sheriff Oborevwori administration.

Edekayen said more prudence should be the watchword among the state MDAs.

With the unprecedented increase in the prices of petroleum products, following the removal of fuel subsidy, and the imminent removal of electricity subsidy, the citizens would need more belt-tightening measures in the weeks and months ahead, he said.

The commissioner revealed that the 2025 budget estimate was based on actual accruals to the state, particularly from the Federation Account from June 2024 till date. He expressed hope that the projection could be sustained, despite the state’s obvious financial constraints.

The proposed estimate represented a slight deviation from previous years’ budgets, which used the price of Nigeria crude oil export as benchmark.
On the impact of the current economic situation, Ekedayen sounded a note of warning, “We are experiencing a double-edged sword of exchange rate fluctuations and subsidy removal, making it a challenging period for the state.”

He revealed that Delta’s “revenue-to-debt ratio over the past year stood at 97 per cent, meaning nearly all the state’s earnings were consumed by its debt obligations”.

The commissioner likened the serious economic situation in Delta State, like any other state in the country, to a hurricane with its associated challenges. But he assured that there would be calm at the end of the experience.

Edekayen stated, “This is just makes us understand that we are in for tough times. So, we must consciously begin to make adjustments.”
He added, “Things are going to be relatively difficult, but that is just the way it is because we are not magicians.”

Nevertheless, Ekedayen said, “This year’s budget defence will be more interactive compared to last year. We are working towards the governor’s M.O.R.E agenda, and whatever we agree on during these sessions will be forwarded for implementation.”