Anambra State Government on Saturday held an intense interactive session with stakeholders following plans to revise its 2020 budget. In view of the Coronavirus pandemic ravaging the country and the world, it has become necessary for the Federal and State Governments to review their budgets to reflect current economic realities.
The virtual session hosted by the State Commissioner for Economic Planning, Budget and Development Partners, Mark Okoye, had in attendance officials of the State Budget team and representatives from the civil society organizations, including the Manufacturers Association of Nigeria (MAN), the State Traders Association, Budgit, among others.
The State Commissioner in an elaborate presentation said the State Budget for 2020, other things being equal, will be revised to N112.8 billion from the earlier Approved Budget of N137.1 billion. The reduction in the budget size is N24.3 billion representing an 18 percent decrease.
Further breakdown shows recurrent expenditure will 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. However, the budgets of critical sectors like Health, Water and Sanitation were left untouched to ensure that there is a buffer to contain Covid –19 outbreaks and associated social and economic fall-out, according to Okoye.
The revised total revenue, according to the commissioner, represents a drop of 29 percent from the projected N158.6 billion to N112.8 billion.
Okoye outlined factors that necessitated the review to include fall in crude oil prices with effects on statutory and value added tax revenues, drop in internally generated revenue (IGR) and other capital receipts.
The commissioner drew special attention to key underlying guidelines driving the 2020 Budget revision, affirming that non-essential items in the budget have either been reduced or stripped from the Ministries, Department and Agencies (MDAs) Capital Expenditure budget.
‘‘The reductions in some non-essential approved budget lines is to position the State against post Covid-19 shocks on the back of dwindling government revenues and receipts,’’ Okoye said.
Findings show that Anambra in the last few years has remained top-ranked in the BudgIT Fiscal Sustainability Index on the back of its prudent public financial management principles and realistic budget strategies.
Continuing, Okoye emphasized that provisions have also been made to provide cash transfers and livelihood support to poor and vulnerable households in light of current economic realities, increase food security and safe functioning of food supply chains for all residents of the State; with special emphasis on poor and vulnerable households, as well as provide low interest financing to support micro and small businesses.
Earlier in a goodwill message, Chris Azor, commended the State Government for organizing the forum aimed at openness and inclusion, and expressed belief that the State has what it takes to tackle the challenge and remain sustainable.
