Gov. Mohammed presents N465bn budget proposal for 2025
By Rauf Oyewole, Bauchi
He said that the 2025 budget christened ‘Budget of Consolidation and Sustainable Development’ is made up of Recurrent Expenditure of N182.743 billion or 39.3 percent while Capital Expenditure received the sum of N282.341 billion or 60.7 percent.
The Governor said that the 2025 budget proposal estimate was 18 percent higher than the 2024 budget and the supplementary budget considered by the House within the year pointing out that the increase is attributable to economic reform which has changed the prices of projects they are executing.
According to him, the budget proposal was prepared based on the Medium-Term Expenditure Framework in compliance with Bauchi State Fiscal Responsibility Law (2009).
The Governor said that the budget proposal further complies with the National Format and Chart of Accounts, aimed at improving the quality of financial reporting in line with the International Public-Sector Accounting Standards.
He said that the 2025 Budget was predicated on the assumptions of an oil production projection of 2 million barrels per day; a benchmark oil price of 75 US dollars per barrel; an exchange rate of N1,400 to the US dollar; an improved level of revenue accruals into the Federation Account arising from oil subsidy removal and an improved and efficient system of internally generated revenue locally at the state level.
He said that the factors that were put into consideration in the preparation of the budget proposal are ensuring the completion of ongoing projects, proposing new projects on the basis of critical needs and the immediate impact they would make, reduction in public sector overheads, implementation of new minimum wage, implementation of the contributory pension scheme in the state, among others.
Giving a breakdown of the budget proposal, the Governor said that the recurrent revenue estimate is over N273.058 billion which he pointed out is made up of an Internally Generated Revenue of N50.028 billion, a Statutory Allocation of N42.030 billion, Value Added Tax of N78.500 billion and allocation from the Federal Government of N102 billion.
He said that the recurrent expenditure which is N181.243 billion is made up of personnel cost of N67.995 billion and overhead cost of N113.248 billion.
For capital receipts, he said that the state projects to receive N172.441 billion from aids/grants: N27.6 billion, bonds: N30 billion and other capital receipts: N114.112 billion.
Mohammed said that Capital Expenditure has been proposed in the sum of N282.341 billion with the administrative sector allocated N69.941 billion, economic sector, N219.506 billion, law and justice sector N9.538 billion and N166.098 billion.
The Governor appealed to the lawmakers to “expedite action towards passing the Budget to enable the Government implement the programmes and projects.”
In a response, the Speaker, Abubakar Suleiman, commended the Governor for his speedy presentation of budgets to the Assembly for consideration and passage ince his assumption in office.
“I want to assure His Excellency that we will immediately swing into action and consider the budget proposal and passage the same for the growth and development of our dear state.
“Let me, however, sound a note of warning to all heads of MDAs to turn up to defend their budget and anybody that fails to turn up, there will be consequences,” he warned.
