The Ekiti State Executive Council has announced a reduction in its 2020 budget from N124.7 billion to N91.1 billion in line with the current economic realities of the country amidst the COVID-19.
According to a statement issued on Friday, the decision was taken at a virtual meeting under the Chairmanship of the Governor, of the state, Dr. Kayode Fayemi.
The proposed budget as announced in the statement by the Commissioner for Information, Muyiwa Olumilua will see a 50 per cent cut in overheads, 20 per cent slash in grant to parastatals and some limitations in capital projects.
Personnel, pensions, and other related costs will, however, be retained 100 per cent.
The Supplementary Budget proposes a recurrent expenditure of N56.5 billion and a capital expenditure of N34.5 billion.
As captured in the statement, the draft also includes a Memorandum on the N2.5 billion credit support facility for the state’s health sector from the Central Bank of Nigeria with which healthcare facilities, acquisition of medical equipment and working capital requirements will be financed.
The Ekiti State House of Assembly had in December last year passed the State 2020 Appropriation Bill of N124.7 billion.
But the supplementary budget which has now been sent to the State House of Assembly is predicated on the global fall in oil prices, leading to a fall in revenue from the Federation account.