*Says 2025 budget formulation process challenging

*Stakeholders applaud Governor Uba Sani, make inputs





The Commissioner, Kaduna State Planning and Budget Commission, Mukhtar Ahmed has assured that the state's 2025–2027 Draft Budget has been crafted to maintain the momentum of previous reforms.



He gave the assurance at the  Budget Town Hall Meeting on Friday November  29,  2024 at Hotel 17 in Kaduna.



"The 2025–2027 budget has been crafted to maintain the momentum of previous reforms, ensuring that the progress made in recent years is not lost. At the same time, we are committed to creating a budget that is sensitive to current economic realities, resilient in the face of external shocks, and focused on sustainable growth," he said.



Presenting the draft 2025 budget overview, he explained that the 2025–2027 Draft Budget has been prepared based on the following key macroeconomic assumptions and considerations:

"Assumptions:

i. Crude oil price at $70 per barrel

ii. Production benchmark at 1.6 million barrels per day

iii. Exchange rate at ₦1,400/$1

iv. Inflation rate at 24%

v. Mineral ratio at 20%

vi. National Real GDP Growth at 3.0%"



According to him, the considerations:L that informed the drafting, include, "Limiting the size of the budget in line with realizable revenues to account for economic uncertainties and shocks.

"Prioritizing funding for the completion of ongoing projects, with a focus on addressing inherited capital liabilities.

"Maintaining the minimum budget allocation ratio of 60:40 for capital to recurrent expenditures.

"Allocating 26% to Education and 16% to Health, totaling 42% of the proposed budget for these critical sectors."



From his presentation, the key budget highlights featured, "Total Proposed Budget Size: ₦790,439,580,083.16

"Opening Balance: ₦75,097,780,795.67

" Recurrent Revenue Projections: ₦452,510,584,215.28

"Recurrent Expenditure including Debt Service: ₦248,245,007,409.60

"Net Recurrent Revenue (Transfer to Capital Budget): ₦279,363,357,601.35

"Other Capital Receipts (Aids, Grants & Loans): ₦262,831,215,072.21

"Total Capital Expenditure: ₦542,194,572,673.56"



Giving the expenditure breakdown by sectors grouping, he said that the economic Sector (Agriculture, Public Works, Infrastructure): ₦370,557,608,564.16, Social Sector (Education, Health, Social Development)₦358,070,895,572.14 and General Administration ₦ 48,328,500,762.08, Law and Justice Sector: ₦ 13,482,575,184.78.



"The 2025 budget formulation process was a bit challenging, trying to formulate a realistic and modest budget in the face of a struggle to avoid a deficit financing which is a bit of an unusual practice away from the usual Balanced budget.



"The initial deficit was as a result of increased debt costs, implementation of new minimum wage, pension liabilities, and increased funding to Climate Change activities in view of the increasing hazards demanding quick action in line with the global focus and practices. The projected deficit was N117.5 Billion representing 15% of the total state’s revenue. However, with confirmation of a significant amount of closing balances from surplus of capital receipt drawdowns, the expected deficit has been eliminated thereby making the draft budget now balanced.



"Ladies and gentlemen, as I present this draft 2025 budget of ₦ 790.43 billion, it is essential to remember that this is more than a financial document. It is a statement of our collective priorities, a commitment to improving lives, and a roadmap for future development in Kaduna State. Your participation in this process is invaluable, and we look forward to hearing your thoughts, comments, and suggestions as we work together to shape the future of our state," he informed.



He described the town hall engagement as very important, which practically reaffirms the government’s agelong commitment to making budgets participatory in line with the principles of OGP.



"These principles are rooted in the values of transparency, accountability, and fostering citizen engagement in governmental activities. Transparency remains a cornerstone of governmental budgeting, and as such, a transparent budget process helps build trust and credibility within the community.



"Engaging citizens in this process improves accountability and enhances the perception of governmental performance, reinforcing the public's confidence in the value they receive from their government," he said.





He extended appreciation to the civil society groups here and those participating remotely through teleconferencing for their relentless contributions to the budgeting process by availing themselves to the actualization of an inclusive budgeting.



"This proposed budget reflects the continuation of a commitment to the SUSTAIN Agenda, translating the collective aspirations into concrete actions that will improve the lives of the people of Kaduna State, strengthen our economic responsibility, and pave the way for a more prosperous future for generations to come. As we know, a budget is more than numbers; it is a reflection of our values, a roadmap to achieving our goals, and a framework for wise investments.



"Adhering to the previous practice, the draft budget document has been made available on the Commission’s website ahead of this meeting, allowing for public input, comments, and suggestions. We remain committed to upholding the values of Transparency, Accountability, and Citizen Engagement as we move forward," he assured.





He however, noted that fuel prices and exchange rate have maintained a pattern more inclined with skyrocketing, exerting a trickle effect on transportation and the overall cost of goods and services which manifests as an additional pressure on general purchasing power further intensifying the inflationary trends across the country.



"As we navigate these challenges, Kaduna State is faced with a crucial need to diversify its economy, strengthen institutions and improve governance, hence the State is fast responding to these realities by embracing structural reforms outlined in the SUSTAIN Agenda, with a focus on Agriculture, Rural Economic Development, Security, Infrastructure, and Human Capital Development.



"These priorities have been integrated into the State Development Plan and are being implemented through the 2024 budget as the key instrument, with huge milestones evident in the massive investments in education and skills development, improvement in healthcare, enhancement of security, infrastructural development, and community engagement and empowerment.



"In this context, the Planning and Budget Commission, Kaduna State Internal Revenue Service and all stakeholders are on deck towards adopting innovative revenue-generation strategies to reduce over-reliance on statutory allocations, ensuring the resilience of our state’s economy in the face of national economic challenges," Mukhtar said.



Meanwhile, as Governor Uba Sani hosted the town hall meeting on the 2025 Budget draft tagged “Sustaining Rural Transformation and Inclusive Development” stakeholders commended him for high performance on implementation.



Discussions at the Town Hall Meeting were open, robust and incisive.



Stakeholders made suggestions and inputs into the proposed 2025 Budget.



They also commended Governor Uba Sani’s administration for the implementation and high performance of the 2024 Budget which has impacted on the lives of the citizens of Kaduna State.



The Governor assured the stakeholders that the collated suggestions will be considered and incorporated into the 2025 Multi-Year Budget.



The Governor said 2025 shall be devoted to the consolidation of the progress so far made in opening up the rural areas through massive infrastructural development.



He added that every citizen of Kaduna State deserves to live a better life.