Ekiti State Government on Saturday announced a reduction in its 2020 budget from N124.5 billion to N91.128 billion, in accordance with the current economic realities due to coronavirus pandemic.
The Commissioner for Information and Values Orientation, Mr Muyiwa Olumilua, disclosed this in a statement in Ado Ekiti.
Olumilua said the government took the decision at its virtual State Executive Council meeting in Ado Ekiti, on Friday.
He said Governor Kayode Fayemi approved a draft supplementary for the downward review of the 2020 budget from N124.5 billion to N91.128 billion in view of the general fall in crude oil prices at the international market.
According to him, the decline in the global oil prices has also caused a drastic fall in revenue accrued to Ekiti State from the Federation Account, which brings the reduction of the initial budgetary status by N33 billion.
In the draft supplementary budget, Olumilua said the personnel costs would remain at 100 per cent with a reduction in overheads by 50 per cent and grants to parastatals by 20 per cent.
“The Supplementary Budget proposes an estimate of N91,128,996,482.01, which is made up of Recurrent Expenditure of N56, 557,958,763.00, and capital expenditure of N34, 571,037,719.01.
“The council also approved a memorandum on the N2.5 billion credit support facility for the medical sector in Ekiti, to be accessed via the Central Bank of Nigeria’s Credit Support Intervention for Health Care sector.
“Out of the N2.5 billion, N2 billion will be expended on financing the State’s Health Care facilities and acquisition of medical equipment, while N500 million is for the purchase of medical consumables, drugs and other expenditure of the state medical facilities.
“The government also approved N281.9 million for the procurement of laboratory equipment for the Ekiti State College of Agriculture and Technology, Isan-Ekiti, Ekiti State,” he said.
Olumilua said the council also approved the operation of an Independent Power Plant to reduce costs being incurred by the government by N276 million yearly
He said the IPP would ensure 24-hour power supply to Ekiti State Government House, Governor’s Office, State Secretariat, Ekiti State Specialist Hospital, Ekiti State University, and to power the street lights in the state capital.
Olumilua said the power plant is expected to take-off by January 2021.