The fall in the global prices of oil occasioned by the Coronavirus pandemic has forced the Anambra State government to review its budget for the year 2020.
State Commissioner for Economic Planning, Budget and Development Partners, Mr. Mark Okoye announced that the state government reduced its 2020 budget by about 16 percent.
The Budget was revised from N137.1 billion, down to N112.8 billion, representing a reduction of about N24.3 billion from its original size for the year.
The revised total revenue, the commissioner said in a virtual budget session presided over by him represents a drop of 29 percent from the projected N158.6 billion to N112.8 billion. He said part of what necessitated the review was the fall in crude oil prices.
Okoye said, “A breakdown shows that recurrent expenditure will decline by 18.9 percent from an initial N58.8 billion to N47.7 billion, while total capital expenditure has been reduced by 16.9 percent from N78.4 billion to N65.1 billion.
“The review became necessary in view of the raving Coronavirus pandemic across the country and the world at large.”
He added that the budgets of critical sectors like health, water and sanitation were left untouched to ensure that there would be a buffer to contain COVID-19 outbreaks and associated social distancing and economic fall-outs.
Okoye drew special attention to key underlying guidelines during the 2020 Budget revision, affirming that non-essential items in the budget have either been reduced or stripped from MDAs capital expenditure budget.
He stressed that the reductions on some non-essential approved budget lines were to position the state against post-COVID-19 shocks, against the backdrop of declining government revenues and receipts.
Okoye emphasised that provisions had also been made to provide cash transfers and livelihood support to the poor and vulnerable households in the light of current economic realities, increase food security and safeguard food supply chains for all residents of the state.
NAN