Obiano signs N114b revised appropriation bill •Blames fall in crude oil price, lockdown of businesses

Posted by News Express | 1 August 2020 | 206 times

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•Governor Obiano

By PAMELA EBOH, Awka

 

Anambra State Governor, Willie Obiano, on Friday signed the revised appropriation bill of N114b for the year 2020 with a 16% reduction.

The budget which had the Theme, “Accelerating Infrastructural Development and Youth  Entrepreneurship”, was reduced to N22.2b from the original budget of N137b.

Recall that the budget was originally approved by the state House if Assembly on October, 25, 2019 and assented to by the Governor on November 8, 2019.

A statement made available to journalists in Awka, on Friday by the executive assistant to the governor on Research & Policy Formulation, Hon Nonso Ndumanya.

The governor, who signed the bill at the Governor’s Lodge in Amawbia, explained that the revision was necessitated by the fall in crude oil price and the national and state-wide lockdown of businesses.

He said: “The situation has forced Federal and state governments to review their approved budgets downwards in line with the expected reductions in revenue.”

The breakdown of the budget showed that recurrent expenditure of N49.2b represents 16.3% reduction from the original estimate of N58.8b and capital expenditure of N65.8b as opposed to N78.4b in 2020 initial budget.

Obiano said that despite the significant reduction in the current expenditure estimates, the state government had kept faith with its responsibility to the workforce by ensuring that minimal reductions were made in the personnel budget.

He added: “The bulk of the reduction was made on non-critical personnel and overhead costs. Overhead and personnel costs for MDAs in the health sector were not reduced as they are central to the state COVID-19 response.”

Further breakdown states that revenues, grants and financing respectively were reduced to N89.4b and N10b from the former estimates of N120.9b and N16b, representing 26 and 37.5% reduction.

The Commissioner for Economic Planning, Budget and Development Partners, Mr Mark Okoye, said the downward revision of the budget was due to financial risks arising from the emerging global economic crisis, especially the fall in the prices of oil at the international market.

“Cut in production and low demand caused by lockdown and movement restrictions with attendant effects on the economy and consequent reductions in federal allocations to states and local government,” he said.

 

 

 


Source: News Express

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