The Commissioner for Budget and Planning in Abia State, Mr. Kingsley Anosike, dispelled misconceptions regarding the administration’s financial management under Gov. Alex Otti, asserting that no loans have been procured thus far.
He noted that the government has operated on public trust since its inception.
Speaking at the unveiling of the “Citizens Version” of Abia State‘s 2024 budget at the Gen. Aguiyi Ironsi Conference Centre in Umuahia, Anosike clarified that while there is a plan to address the projected N319 billion budget deficit through borrowing, the administration is cautious and not rushing into taking any loans.
The event, themed “A New Beginning,” saw participation from various sectors including traders, civil society groups, traditional rulers, and students.
The state’s budget for 2024, the largest ever proposed, allocates 84% to capital expenditure and 16% to recurrent expenditure.
Anosike further elaborated that although the government has engaged with both local and international banks to negotiate loans with exceptionally low-interest rates, none of these loans have been accessed yet.
Notably, some loans come with a 14-year moratorium period.
“In principle, we have secured these loans but can only draw them when we need them. This administration is running on trust and public confidence. We are still managing with what we have saved.”
He clarified that borrowing to finance development was not incorrect, but rather “entirely appropriate,” as long as the funds were used responsibly.
“There is no government in the world that doesn’t borrow for development. We inherited a debt of N192 billion, and we have been servicing it. But the good news is that we have not borrowed since we came on board.
“All that we have accomplished in the past 11 months were through our judicious management of available resources.”
Mr. Anosike disclosed to the audience that Otti’s administration was committed to transparency and accountability, and would not mismanage public funds.
“We came here because we think that we can make a change, and part of our vow was that we will be transparent. That’s why we have consistently published our quarterly reports for all to see. There is nothing to hide.
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The Commissioner elaborated that the initiative was designed to ensure that local communities grasp the intricacies of the 2024 budget, empowering them to hold the Government to greater accountability.
Moreover, he revealed that several international donors, such as UNICEF and the European Union, have expressed interest in investing in the state due to the increasing public confidence in the Otti-led administration.
“We don’t ask them to give us cash but to use their own vendors to do it according to specifications. These donors did their research and discovered on their own that we are committed to transparency.
“If it were before, government will say: give us the cash and it will develop wings like the airport project”.
In his remarks, Commissioner for Finance, Mike Akpara, asserted that the days of financial irresponsibility within the government were now a thing of the past.
He emphasized that the current administration prioritized transparency and fiscal prudence, highlighting concerted efforts to stem financial losses.
Dr. Queen Obioma, the Head of Service, echoed this sentiment, underlining the administration’s commitment to accountability and inclusive governance. She appealed for public backing, particularly in bolstering the state’s finances.
Attendees commended the government’s initiative to elucidate the budgetary process to all sectors of society.
They praised the Governor for his multifaceted development initiatives and pledged unwavering support for the Otti-led administration, urging the continuation of its progress.
(Vanguard)
