Going by negative impacts of coronavirus pandemic on the world economy, the Kwara State government has declared an intent to slash the 2020 fiscal estimates by 25%, cutting the N160 billion budget size earlier prepared for the year to N120 billion.
Recall that Governor Abdulrahman Abdulrazaq of Kwara State had prepared and assented to the 2020 fiscal estimates covering N85.86 billion, representing 53% as capital expenditure and N76.14 billion as recurrent expenditure, representing 47% of the total budget for the year.
The governor proposed a sum of N7 billion as financial buffer, representing 4.3% of the finance sources as opening balance; N48.9 billion from Federal Accounts, representing 30.2%; N39.8 billion as Internally Generated Revenue, representing 24.5%; N45.9 billion as Capital Development Funds, Aids and Grants, representing 28.3%; N16.4 billion from Value Added Tax, representing 10.1% and N193.3 million, and representing 0.1% as Other Receipts.
Read also: Kwara slashes right of way for digital connection to N1 per km
But, as strategic moves towards downward review of the 2020 budget due to current economic realities, Governor Abdulrazaq declared his government’s plan to slash the state’s fiscal estimates for year 2020 from N160 billion to N120 billion, saying the plummeting prices of crude oil in the global market, leading to shortfall in the Federation Allocations to states as well as falling production capacity, outputs as well as gross domestic product, responsible for sharp downward review of the budget.
Speaking at a media parley on the Review of One Year Anniversary held in Ilorin, the state capital at the weekend, Governor Abdulrazaq said the downward review of the budget would be done in such a way that the fiscal estimates would still perform critical obligations and expenses meant to achieve in the long run as industrialisation agriculture, infrastructure, education and health as well as other critical expenses would be retained.
For primary education, the governor stated that his administration was restoring the lost glory through the payment of necessary counterpart funds to the Universal Basic Education Commission (UBEC), explaining that N8 billion counterpart fund had been paid to the Federal Government to be able to access N16 billion from UBEC.
On the roads infrastructure achievements, the governor said 35 roads, across the state, were under reconstruction while five waterworks had been rehabilitated and are now supplying residents with quality water, adding his administration would roll out state master plans on economy, energy and agriculture soon as part of measures to spread development in every part of the state.
“Let us make sure that we start delivering now with the right trajectory because our people voted for change and change has come to stay. People will continue to see the change. Yes, some (persons) will complain that we’re not sharing money. We’re not doing this, we’re not doing that. We are not here to share money; we are here to share projects and infrastructure. We expect people to stay with us and stay focused,” he said.
