Commissioner for Budget and Planning, Abia State, Mr Kingsley Anosike, has said that the Gov. Alex Otti -led administration had not drawn any loan contrary to misconceptions in some quarters, but has been running on public trust since it came on board.
The Commissioner who made the clarification while speaking at a one-day presentation of “Citizens Version” of the 2024 budget of Abia State, held at Gen. Aguiyi Ironsi Conference Centre Umuahia, said that although the State hoped to service the 2024 budget deficit of N319 through loan, the administration was not in a hurry to draw any credit facility.
Participants at the event with the theme: “A New Beginning”, were drawn from traders, civil society groups, traditional rulers, students among others.
Recall that the State had projected to raise N248 billion of its N567 billion total budget estimate from federation allocation, Internally Generated Revenues (IGR), grants and donations from donor agencies, leaving a deficit of N319.
The budget which is the highest ever to be proposed by the state, comprises 84% capital expenditure, and N16% recurrent expenditure.
The Commissioner explained that Government had approached both local and international banks and negotiated for loans at unprecedented low interest rate, no dime had been so far drawn from any of the loans.
According to him, some of the loans have 14-year moratorium attached to them.
“In principles, 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, however, explained that it was not wrong but “absolutely right to borrow to fund development”, provided the fund would not be abused.
”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 told 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.
The Commissioner further explained that the engagement was aimed at making the grassroots to understand the 2024 budget to enable them hold Government more accountable.
He hinted that many foreign donors including UNICEF and Europe Union, had on their own indicated interest to invest in the state following the growing public trust of 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 contribution, Commissioner for Finance, Mike Akpara, said that the era of financial rascality by Government was over.
He said that the current administration placed high premium on accountability and financial responsibility, adding that serious efforts had been made to block financial leakages.
In a remark, the Head of Service, Dr Queen Obioma, said the current administration believed so much in accountability and carrying the people along.
She solicited support for the Government especially in its efforts to shore up the finances of the state.
Participants at the event expressed delight that Government considered it wise to explain the budget to every strata of society.
They lauded the Governor for his various developmental strides, they pledged their continued support for the Otti-led administration, urging him to sustain the tempo.
Peoplesmind
