Why Osun 2025 budget increased by 56% – Commissioner

By Deborah Oladejo, Osogbo

Osun State Commissioner for Economic Planning, Budget, and Development, Prof. Moruf Ademola Adeleke, has disclosed that the 2025 budget is based on government policies and influenced by macroeconomic variables such as inflation rate, GDP growth rate, exchange rate, oil prices, and, most importantly, the needs of the citizens. This led to a significant increase of 56% compared to the 2024 budget.

Speaking with journalists at the 2025 budget analysis held at the Government Secretariat in Osogbo on Thursday, Adeleke explained that the budget, tagged the “Budget of Sustainable Growth and Transformation,” stands at N427.7 billion. It is designed to fast-track the revitalization of various sectors of the state economy, positioning Osun on a path of sustainable development.

According to him, the focus will be on education, health, sports, roads, agriculture, the creative industry, the digital economy, general infrastructure, and women and youth programs and policies.

The budget breakdown shows that recurrent expenditure stands at N236.2 billion, representing 55% of the total budget, while capital expenditure is N191.5 billion, representing 45%. Personnel costs are estimated at N102.9 billion, which accounts for 24% of the total budget.

“The other recurrent expenditure, which consists of non-debt expenditure of N104.3 billion and the service of previous administrations’ debt amounting to N29.05 billion, totals N133.3 billion, representing 31% of the total budget size,” Adeleke explained.

The government expects to generate revenue from various sources, including N251.6 billion from the Federation Accounts Allocation Committee (FAAC), N109.8 billion from Internally Generated Revenue (IGR), N36.2 billion from other capital receipts, and N30.01 billion from the estimated opening balance.

Adeleke emphasized, “The Osun State Government is committed to strategically investing in infrastructure, technology, health, education, security, and other key sectors that drive growth, ultimately boosting economic development and creating new job opportunities within the state.

“As a revenue-driven budget, the state aims to achieve a more stable revenue stream by fostering economic growth and increasing revenue generation.”

He urged the citizens of Osun to cooperate with the revenue-generating agencies to achieve the state’s developmental goals.

Governor Ademola Adeleke had initially presented a proposed budget of N390.02 billion to the State House of Assembly. The budget was later increased by N37.7 billion, bringing the total to N427.7 billion to accommodate the growing needs of the citizens.

The Governor presented the budget proposal to the Assembly on November 13, 2024. It was subsequently passed on December 23, 2024, and signed into law on December 30, 2024.

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