The Ekiti State government has announced a reduction of its 2020 budget from N124.5 billion to N91.128 billion, in accordance with the current economic realities due to coronavirus pandemic.
The decision, according to the state Commissioner for Information and Values Orientation, Mr Muyiwa Olumilua, who made disclosure in a statement in Ado Ekiti, was taken at the virtual state executive council meeting held in Ado – Ekiti over the weekend.
Olumilua said that Governor Kayode Fayemi approved a draft supplementary for the downward review of the 2020 budget from N124.5 billion to N91.128 billion, following the general fall in crude oil prices at the international market, occasioned by the COVID-19 pandemic.
The commissioner said the decline in global oil prices has also resulted in drastic reduction in revenue accruing to the Fountain of Knowledge from the federation account, thus culmination in the over N33 billion down review of the budget.
In the draft supplementary budget, Olumilua said personnel costs would remain at 100 per cent with a reduction in overheads by 50 per cent and grants to parastatals by 20 per cent.
He said, “The Supplementary Budget proposes an estimate of N91,128,996,482.01, which is made up of Recurrent Expenditure of N56, 557,958,763.00, and capital expenditure of N34, 571,037,719.01.
“The council also approved a memorandum on the N2.5 billion credit support facility for the medical sector in Ekiti, to be accessed via the Central Bank of Nigeria’s Credit Support Intervention for Health Care sector.
“Out of the N2.5 billion, N2 billion will be expended on financing the state’s health care facilities and acquisition of medical equipment, while N500 million is for the purchase of medical consumables, drugs and other expenditure of the state medical facilities.
“The government also approved N281.9 million for the procurement of laboratory equipment for the Ekiti State College of Agriculture and Technology, Isan-Ekiti, Ekiti State.”
The Information Commissioner also disclosed that the executive council also approved the operation of an Independent Power Plant, IPP, to reduce costs being incurred by the government by N276 million annually.
Olumilua said that the IPP, expected to take-off by January, 2021, would ensure a 24-hour power supply to Ekiti State Government House, Governor’s Office, State Secretariat, Ekiti State Specialist Hospital, Ekiti State University, and also power street lights in the state capital.