The Ekiti State Government said it has concluded plans to send a supplementary budget to the state House of Assembly aimed at reducing the N124 billion 2020 budget due to the negative effect on oil price per barrel around the world occasioned by the coronavirus pandemic,
The state governor, Dr Kayode Fayemi had in December 2019 signed into law the 2020 appropriation with N71 billion earmarked for recurrent expenditure representing 57 per cent and capital expenditure to gulp N53 billion which constitutes 13 per cent of the budget.
The Commissioner for Information, Mr Muyiwa Olumilua in a statement on Thursday said the decision was taken after the virtual meeting of the State Executive Meeting via video conferencing with chaired by the governor.
He noted that the state could no longer maintain the current budget in the state with the economic realities in the country, adding that the 2020 budget was prepared with $57 per barrel estimate, which has now dropped to less than $35 per barrel.
“The Executive Council approved the transmission of a draft Supplementary Budget to the Ekiti State House of Assembly, seeking a downward review of the Budget 2020, to align with the current realities of the economic conditions of the State and the country as a whole. Considering that the Budget 2020 was based on an oil price benchmark of $57 per barrel, with the current global price of oil hovering between $20-$35 per barrel, it was wise for the State to adjust the budget based on a benchmark of $25 per barrel.”
He stressed that the decision of the government to reduce the budget would not in any way affect the salaries of civil servants, saying, status quo will be maintained in that regard.” Olumilua said.
“As presented by the Commissioner for Finance, being a requirement for Ekiti State Government to ensure a better performance under the Federal Government’s Fiscal Sustainability Plan (FSP), and the World Bank’s State Fiscal Transparency Accountability and Sustainability (SFTAS) programme,” the statement reads.
Olumilua disclosed that the law would stabilise the macroeconomic situation of the state by controlling the State’s fiscal aggregates, such as State Government’s expenditure, revenue, and debt.
