On Tuesday, October 15, 2024, Delta State commenced the 2025 budget defence exercise at the Prof. Chike Edozien Secretariat, Asaba. The event, marking the opening ceremony, was attended by representatives of various Ministries, Departments, and Agencies (MDAs), who were present to justify their budget proposals for the upcoming fiscal year.
The Commissioner for Economic Planning, Mr. Sonny Akporokiamo Ekedayen, who serves as the Chairman of the Budget Defence Committee, led the exercise. During his address, Mr Ekedayen emphasized that the budget defence is part of Delta State’s commitment to open governance protocols and an annual tradition aimed at ensuring transparency and accountability. He stated, “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.”
He highlighted that the process involves a thorough examination of the proposed budgets, scrutinizing the practicality of each agency’s plan. “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,” Ekedayen remarked.
Addressing the economic challenges, Mr. Ekedayen noted that the last 12 months had seen significant shifts in the economy, driven by factors such as exchange rate liberalization and the removal of fuel subsidies. “What we are experiencing today is a combination of these economic changes,” he explained.
He pointed out that when President Bola Tinubu assumed office, the country’s revenue-to-debt ratio stood at around 97%, meaning that nearly all the revenue generated was used to service debts. “Our earnings were not substantial, yet our debt profile was considerable. Preparing the 2025 budget involved considering these economic realities,” he added.
Mr. Ekedayen elaborated on the approach used in crafting the 2025 budget, stating, “We are not magicians, and given the unpredictable nature of the economy, making long-term projections has been challenging. To ensure stability, we 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.”
The Commissioner revealed that the proposed 2025 budget stands at N936 billion, reflecting a 30% increase from the N725 billion budgeted in 2024. However, he stressed that the increase does not necessarily translate to more purchasing power due to the declining value of money. “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,” he said.
Mr. Ekedayen 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,” he cautioned.
He acknowledged the rising costs of infrastructure and other essential services, attributing part of the increased demand on the government to the high poverty levels in the state. “Most of the time, due to the poverty line, there is heavy reliance on the government for a lot of things, and the government can only do so much. We must keep this in mind and approach this entire process with seriousness and realism,” Mr. Ekedayen concluded.
The budget defence exercise will continue over the coming days, with MDAs expected to provide detailed justifications for their budgetary requests, focusing on aligning their spending with the state’s economic goals and available resources.
