Adamawa State Executive Council has approved a downward review of the 2020 approved budget by twenty-four percent and the Physical Strategy Paper.
Briefing Newsmen after the Extra-Ordinary meeting which was presided over by Governor Ahmadu Umaru Fintiri Tuesday at the Council Chamber in Government House Yola, the Honourable Commissioner Ministry of Information and Strategy, Dr. Umar Garba said that the Council takes the decision after it considered and approved the review of the 2020 Medium Term Expenditure and Fiscal Strategy Paper in conformity to the existence laws of the Fiscal Responsibility Law of 2018.
The mouth piece of the Executive Council revealed that the council has reviewed the budget after a holistic review of the world, country and the state economic reality which was globally affected by novel coronavirus. Adding that the fabric that oils the economy are all in shambles.
He said this underscore the resolve of the State Government to as mater of priority review the budget to meet the situation on ground and also create other sources of funding the budget.
Dr. Garba said that in the Physical Strategy Paper oil production in Nigeria was 2.18 million barrels per day against 1.94 barrels which is the present reality; oil was sold at $55 per barrels, now $25 per barrel; and the exchange rate was N305 per dollar, but now is N360 per dollar.
He said when the Physical Strategy Paper was made the inflation rate was 10.36%; today it is galloping at about 12.26% while the State Internally Generated Revenue was N12.813 billion and now it was zeroed to N7.688 billion.
Dr. Umar Garba revealed that the proposed reviewed budget will soon be transmitted to Adamawa State House of Assembly to veto it.
Chip in, the Commissioner of Finance Mr. Ishaya Dabari said the downward review of the budget will only affect Capital Expenditure and Overhead Cost while personnel cost will remain as it was in the 2020 approved budget.
He expressed optimism that the review budget will be realised.
It could be recalled that on 26 November, 2019, Governor Ahmadu Umaru Fintiri presented to Adamawa State House of Assembly over N183 billion proposed budget which was later approved and signed into law.