Katsina State Government has earmarked N20.4 billion for debt servicing in its 2025 proposed budget.
This figure represents a slight increase compared to the N19 billion spent on debt servicing in the previous year.
The state’s Commissioner for Budget and Economic Planning, Alhaji Bello H. Kagara, revealed this during a press briefing on Tuesday. He explained that the debt burden was inherited from the previous administration, dating back over five years.
Governor Dikko Radda had earlier on Monday presented a proposed budget of N682 billion for the 2025 fiscal year to the state House of Assembly.
A breakdown of the budget as presented by Kagara at the press briefing shows that the 2025 budget represents a significant 40% increase from the previous year’s budget. He explained that the government aims to use these funds to drive development and improve the lives of its citizens.
Furthermore, the Budget Commissioner disclosed that the budget shows that capital expenditure got a significant portion of 76.85% (N524.3 billion) of the total budget which will be spent on long-term projects and infrastructure development.
Kagara further disclosed that recurrent expenditure got the remaining 23.15% (N157.9 billion) which will be used to cover day-to-day government operations, including salaries, pensions, and other operational costs.
Kagara revealed that to fund this ambitious budget, the state government will leverage a combination of revenue streams from Internally Generated Revenue, Federal Allocations and Capital Receipts. The Budget Commissioner noted that Governor Radda’s administration has prioritized balanced development, with revenue streams including, Internally Generated Revenue of N64.4 billion, a Federal Accounts Allocation commanding N316.9 billion and Capital Receipts to the tune of N280.9 billion.
The Budget Commissioner explained that the economic sector will receive a substantial allocation of N302.2 billion (44.3%) which is the largest shares to boost economic growth, job creation, and industrialization in the state. This is followed by the
Social Sector with a N275.5 billion (40.4%) earmarked for social services, including healthcare, education, and social welfare programmes. Similarly, Kagara said the administrative sector is allocated a N98.3 billion (14.4%) to fund government administrative functions while
N6.2 billion (0.9%) is set aside for the law and justice sector.
On key ministerial allocations, Kagara explained that the Ministry of Education has N96 billion (14%), Ministry of Agriculture and Livestock Development N81.8 billion (12%), Ministry of Works, Housing and Transport: N59.6 billion (8.5%), Ministry of Rural and Social Development 62,7 billion (9%), Ministry of Water Resources 53.8 billion (8.6%), Ministry of Environment 49.8 (9.3%), Ministry of Health 43.8 billion (8.8%), Ministry of Internal Security and Home Affairs 5.2 billion (1.2%) and Others 315.1 (42.6%).
“This budget is a testament to the unwavering commitment to transparency and strategic governance of the Malam Radda led administration,” Kagara noted.
He added that the state government is committed to transparency and accountability in the implementation of this budget, aiming to deliver tangible benefits to the people of Katsina State.