Obinna Odogwu, Awka
Anambra State Government has proposed a downward review of its 2020 budget from N137.1 billion to N112.8 billion.
The reduction in the budget size which stands at N24.3 billion represents 18 percent decrease from the original amount.
Commissioner for Economic Planning, Budget and Development Partners, Mark Okoye, disclosed this during a virtual session attended by officials of the state budget team, representatives from the civil society organisations, Manufacturers Association of Nigeria, traders’ association and budget officials.
Okoye said with the fall in crude oil prices which had effects on statutory and value added tax revenues, drop in internally generated revenue and other capital receipts, the review became necessary to reflect the current economic realities.
He said the COVID-19 pandemic has affected not just the country’s economy, but that of the world at large thereby making it necessary that the federal and state governments should consider reviewing their 2020 budgets to reflect the present economic realities.
The commissioner said the budget for 2020, all things being equal, would be revised to N112.8 billion from the earlier approved budget of N137.1 billion.
Further break down shows that the recurrent expenditure would decline by 18.9 percent from the initial N58.8 billion to N47.7 billion, while total capital expenditure was reduced by 16.9 percent from N78.4 billion to N65.1 billion.
The budgets of critical sectors such as health, water and sanitation, according to Okoye, would not be touched to ensure there is a buffer to contain COVID-19 outbreaks and associated social and economic fall-outs.