Governor Kayode Fayemi of Ekiti State on Monday signed the Revised/Supplementary Appropriation Bill of N91.128 billion into law.
This was in response to the prevailing economic challenges occasioned by an unprecedented fall in the price of crude oil and other prevailing economic indices.
Fayemi assented to the Revised/Supplementary Appropriation bill at the Conference Hall, Governor’s Office, in line with the COVID-19 protocol, which permits very few numbers of attendees with strict observance of physical distancing.
The bill, according to the governor, reflects the downward review of the initial budget of N124.724,869,355.85 to N91,128,996,482.1, representing a 27 per cent reduction in size.
”The revised budget is made up of recurrent expenditure of N59.63 billion and capital expenditure of N32.65 billion, representing a ratio of 55:35 per cent,” Fayemi explained.
The governor explained that the revised/supplementary budget became expedient as a result of the outbreak of Coronavirus (COVID-19) which “dealt a debilitating blow on our macroeconomic projections”.
He said this made the initial budget which was prepared in the “underlying assumption of the relative stability of major macroeconomic parameters” unrealistic.
He said: “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, the 2020 budget was put together to ensure that our meagre resources were committed to critical areas of the economy, to include Health and Environmental Response, interventions.
“This is with a view to improving the standard of living of the people, ensuring food security in the Agricultural sector, improved the ease of doing business and other multi-sectoral responses,” Fayemi said.
The governor disclosed that the budget was designed to also focus on critical legacy projects, after taking into cognisance of the dwindling revenue accruing to the state from the federation account.
He revealed that the revised/supplementary budget incorporated the guidelines for the State Fiscal Transparency and Accountability (SFTAS) Programme-for-Result,
Fayemi stressed that the current economic situation does not give room for “frivolities” but sacrifice, charging all Ministries, Departments and Agencies (MDAs), and other stakeholders to maintain budget discipline in the execution of the budget.
The governor commended members of the state House of Assembly for expediting action on the passage of the financial bill, saying that the budget is the outcome of a wider community and public engagement.
Earlier in his address, the Speaker of the state House of Assembly, Mr Funminiyi Afuye, said the revised/supplementary budget was passed by members of the legislature following due consultation with relevant MDAs and other stakeholders in cognisance of the current economic reality of the country as affected by the outbreak of COVID-19.
The News Agency of Nigeria (NAN) reports that the brief ceremony was witnessed by the Deputy Governor, Otunba Bisi Egbeyemi; Speaker of the House of Assembly, Mr Funminiyi Afuye; Deputy Speaker, Hakeem Jamiu; Members of the state House of Assembly; Secretary to the State Government, Biodun Oyebanji; Head of Service, Mrs Peju Babafemi, among other stakeholders.