ABUJA, Nigeria (VOICE OF NAIJA)- Benue State Governor, Hyacinth Alia, on Wednesday unveiled a proposed budget of N550 billion for 2025 before the State Assembly, marking a 47.5% increase from the revised 2024 budget.
The budget, themed “Budget of Human Capital Development, Food Security, and Digital Economy,” reflects the administration’s commitment to leveraging recurring revenue to achieve developmental goals while minimizing debt burdens on future generations.
Governor Alia acknowledged the budget’s deficit nature, revealing plans to borrow a moderate sum of N26 billion to bridge the gap.
The proposal allocates over N174 billion for recurrent expenditures, ensuring the continuation of minimum wage payments and other overhead costs.
Meanwhile, capital expenditures are projected at N375 billion, a 71.5% increase from the previous year’s revised figures, underscoring a strong emphasis on infrastructure and developmental projects.
The governor said, “Mr Speaker, Honourable Members, the intention of the government is to stay within the limits of its recurring revenue to build the Benue of our dreams, without accruing unnecessary debts for generations unborn.
READ ALSO: Alia Spends $2.82m To Service Benue Loans
“This explains why Benue State is among the few states in the country that are offsetting the indebtedness, paying salaries, and meeting other financial and infrastructure commitments without recourse to borrowing.
“However, since the 2025 budget is a deficit one, it proposes a borrowing plan of a conservative sum of Twenty-Six Billion, and Fifty-Three Million, Nine Hundred and Fifty-Three Thousand, Seven Hundred and Thirty-Six Naira Thirty-Two Kobo only (N26,053,953,736.32K).
“This represents a modest 4.7% of the proposed aggregate expenditure for 2025. This is lower than the State’s Debt-to-GDP ratio of 8.2% which is within the benchmark of the 25% debt sustainability threshold.
The sectoral breakdown of the proposed expenditure reveals that the administration takes the largest share, with over N212 billion allocated, followed by the economic sector, which receives approximately N197 billion.
Education and knowledge management, as well as health and human services, are each set to receive about N83 billion, while agriculture and food security are allocated N84 billion.
Law and justice will get N27 billion, security N47 billion, and infrastructure N110 billion. Social welfare is allocated N5 billion.
Other allocations include N59 billion for commerce, N19 billion for the digital economy, and N35 billion for miscellaneous expenses.