Governor Godwin Obaseki of Edo State has officially signed the revised 2024 supplementary budget into law, marking a significant financial adjustment for the state. The newly signed budget, which now stands at N404 billion, reflects a 22 percent increase from the initial figures. This revision was deemed necessary due to the prevailing inflationary trends and other economic developments that have emerged over the past five months.
During the signing ceremony held at the Government House in Benin City, Governor Obaseki explained the rationale behind the budget amendment. He noted that the economic landscape has shifted significantly since the original 2024 Appropriation Act was passed late last year, necessitating adjustments to align the budget with current realities. “I have signed into law the revised supplementary budget for Edo State. We have to amend the 2024 Appropriation Act which was passed late last year because of developments that have occurred in the economy in the first five months of the year,” he stated.
The governor highlighted that the decision to increase the budget by approximately 22 percent was driven by several key factors. One of the primary reasons was the remarkable budget performance observed in the first quarter of the year. “We have to increase our budget by about 22 percent, to about N404 billion from the earlier projected figures. The reason we had to do this is because from the first quarter of this year, we saw a 100 percent budget performance for that period,” Obaseki explained.
Additionally, the governor pointed out that the inflationary trends in the economy have necessitated an upward adjustment in the capital budget. This adjustment aims to ensure that the state’s financial planning remains realistic and responsive to economic conditions. “Also, because of the inflationary trend in the economy, we have had to adjust our capital budget to reflect the new trend we are seeing,” he added.
Another crucial factor influencing the budget revision is the recent decision on the minimum wage, which carries significant financial implications. This decision was not anticipated in the original appropriation law, prompting the need for an amendment. “We also had to make a decision on the minimum wage which has financial implications. We didn’t anticipate that in the earlier appropriation law which we have had to amend,” the governor noted.
Governor Obaseki expressed confidence that, despite the revisions, the state will be able to meet its financial targets for the year. “We expect that even with the revised and supplementary appropriation bill, we will meet the target which is N404 billion, which is now the proposed budget for the year,” he stated.
He further emphasized the state’s commitment to prioritizing capital expenditure over recurrent spending, ensuring that the majority of the budget will be directed towards development projects that can drive growth and improve the quality of life for Edo State residents. “What is important to note is that we are still spending more on capital than recurrent expenditure,” Obaseki concluded.
The revised budget is a testament to the state government’s proactive approach in managing its finances and responding to economic changes. By making these necessary adjustments, the Edo State Government aims to maintain financial stability and continue its development agenda effectively.
