Ekiti State Governor, Kayode Fayemi, on Monday signed the revised supplementary Appropriation Bill of N91.128 billion into law.
The government reviewed the appropriation bill in response to the prevailing economic challenges occasioned by unprecedented fall in the price of crude oil and other prevailing economic indices.
Fayemi signed the appropriation bill at the Conference Hall in the Governor’s Office in line with the COVID-19 protocols, which permit very few people in attendance in compliance with the physical distancing directive.
The bill, according to the governor, reflected the downward review of the initial budget of N124.724,869,355.85 to N91,128,996,482.1, representing a 27 percent reduction in size.
He said: “The revised budget is made up of a recurrent expenditure of N59.63 billion and capital expenditure of N32.65 billion, representing a ratio of 55:35 percent.”
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The governor added that the revised supplementary budget was necessary because of the outbreak of COVID-19 which “dealt a debilitating blow on the state’s macroeconomic projections.”
He said the development made the initial budget which was prepared in the “underlying assumption of relative stability of major macroeconomic parameters” unrealistic.
Fayemi added: “The pandemic rendered our economy prostrate with an unprecedented fall in the price of crude oil in the global market.
“The volatility in the oil price coupled with the reduction in oil production and devaluation of the Naira to the Dollar made our revenue projections for 2020 budget unrealistic.
“To mitigate the effect of the pandemic on our economy, it becomes imperative to review our 2020 budget and prepare a supplementary budget which would be responsive to our time and circumstances.
“Consequently, 2020 budget was put together to ensure that our meager resources was committed to critical areas of the economy, to include health and environmental response and interventions.”
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