Changing gears of budget acceleration and execution in Anambra

The Anambra State budgets since the inception of innovative governance of Profess Charles Chukwuma Soludo in 2022 have been a symphony of scientific calculus and progressivism, courtesy of an alchemy of a honed administrator, economist and a meteoric statesman. Following a steady pragmatic motion, the vehicle took off in 2023 accelerating to the 2024 Budget titled, “Changing Gears: The Transformation Agenda Begins” estimated to be N410 billion for the fiscal year compared to N259 billion for 2023, which reflects an increase of approximately 57.8 per cent.

Recurrent expenditure accounted for N96.2 billion (23.46 per cent), while capital expenditure totaled N313.



9 billion (76.54 per cent). The budget deficit was estimated at N120.

8 billion reflecting the general macroeconomic conditions. Minus unforeseen political turn of events, the budget philosophy of Professor Soludo, especially in a transition to second term, would define a two term governorship cycle for total transformation of the state; delivering on “all the five fingers of the Solution Agenda: Security, Law and Order; Infrastructure and Economic Transformation; Human Capital and Social Agenda; Governance and Value System; and Environment”. The 2025 budget proposals titled: “Changing Gears 2.

0” with emphasis on acceleration and execution is a nonpartisan sustainable development budget for Infrastructure and economic transformation as well as human capital development. With the proposed budget size of N606,991,849,118 for the fiscal year 2025 and compared to the 2024 budget of N410,132,225,272, this represents a 48.0 per cent increase.

“Recurrent expenditures account for N139.5 billion (YoY growth of 45.0 per cent), while capital expenditure is N467.

5 billion (YoY growth of 48.9 per cent). The Capital Budget constitutes 77 per cent of the total budget size, while recurrent expenditures account for 23 per cent (the same ratios as for the 2024 budget).

The budget deficit is estimated at N148.3 billion (24 per cent of the budget compared to 30 per cent in the 2024 budget).” As in the 2024 budget, the deficit is expected to be funded through revenue growth.

The 2023 and 2024 deficits were funded without reference to the financial institutions, and that fiscal refrain may apply to 2025 budget. Among other projections, Anambra State as prosperous home land would be simulated as a tourism and business destination by this digital budget calculus devoid of knee jacks approaches and hiccups characteristic of previous administrations. In the spirit of Changing Gear of Budget acceleration and execution several key sectors would be appropriating the capital expenditure of N467.

5 billion representing 77 per cent and recurrent expenditures of N139.5 billion representing 45.0 per cent, of the total budget size with significant increases compared to 2024 : the administrative sector by 45.

5 per cent; the Economic sector by 40.1 per cent; the Judiciary sector by 51.3 per cent; the social sector by 82.

7 per cent; Education by 101.4 per cent; Health by 57.1 per cent; and Infrastructure investment by 38.

9 per cent. At least, 70 per cent of the budget which is allocated to these sectors would unlock the revenue streams, attract investments and foster private sector growth in Anambra State. From the 77 per cent of the total budget size for capital expenditure (N467.

5 billion), the 2025 budget targets the development of three new cities: Awka 2.0, Onitsha 2.0, and a new Industrial City, the Anambra Mixed-Use Industrial City Master Plan and the railway master plan/feasibility.

Afreximbank and AFDB are committed to the development of the Industrial City which have the touch lights of the Ease of Doing Business and the Anambra Investment Summit (ANinvest 2.0), where 10 elite companies signed Memoranda of Understanding (MOUs). Up scaling the facilities of the Chinua Achebe International Airport and encouragement of private sector investments in the Anambra Electricity Market, under the National Electricity Amendment Act of 2023 are in accordance with the Solution Touch.

The litmus test of budget performance in all this capital expenditure would be a function of Public-Private partnership and collaboration. So also investments in mass transit systems and marine transport, including buses, jetties and boats as well as power access to underserved communities and access to clean water. From recurrent expenditures estimated at N139.

5 billion representing 45.0 per cent of the total budget, the government would continue to fund human capital in education, provide qualitative education and sustain free education policy, transforming twenty-two secondary schools into smart schools, continue the aggressive upgrade of infrastructure in primary schools through the ASUBEB programs, continue to support mission schools, especially the “returned mission schools” and payment of the salaries of government teachers deployed to these “returned mission schools”, excluding the pensions of teachers that retired from these schools. By the vision in the Economic sector with 40.

1 per cent and the Social sector with 82.7 per cent of the budget estimates, the needs of the poor and vulnerable individuals would be catalysed whereby more than 100,000 households will receive ten or more seedlings of coconut, palm, ukwa, pawpaw, soursop, and other crops per household. Here again grants would be extended to micro-businesses across 326 wards in the state as part of commitments to APGA Party mantra “Onye Aghana Nwanneya”.

The budget would also expand the One-Youth-Two-Skills programme to accommodate more youths and empower them accordingly with establishment of a One Million Digital Tribe, scaling the digital skill training program through the Solution Innovation District (SID). This is to generously bolster Anambra state economy as well as transform and unlock the youth potentials as future leaders for economic productivity and growth. The size of the budget is adjudged relatively small—in real terms (purchasing power) and even in dollars, not in exaggerated or bloated terms, amounting to $357 million—when compared to actual expenditures as per audited accounts in previous years (2008: $517 million; 2013: $1.

1 billion; 2014: $1.2 billion; 2015: $685 million and 2021: $329 million)”. It means that in comparison with the regimes of His excellencies, Peter Obi and Willie Obiano, this government is spending less of dollars and less of external borrowing; naira value is exalted and home products promoted.

The budget of acceleration would be spending a fraction of what was spent in some years past despite the humongous increases in the prices of basic inputs in construction and governance. Hence the government would only go for concessionary loans and for projects with a clear plan for repayment in the future. With a projected average monthly internal generated revenue of N5 billion, contrary to the current average of M2.

5 billion which is below the state’s capacity, the state’s fiscal discipline holds sway with frugality and “doing more with less” ideology. This is amid cut of cost of governance with unprecedented ratio of our recurrent to capital budget, 23 per cent to 77 per cent. The budget of acceleration and execution in all its sinews is a dependable economic mathematics laying the groundwork for a thriving and sustainable future for many generations to come.

Perhaps, that is why the Anambra state government is rated the number one state in fiscal transparency and top five in fiscal sustainability Prof Dukor is the President/Editor-in-Chief of Essence Library (Cultural and Scientific Development Centre), Department of Philosophy, UNIZIK..