It has been reported that the Niger State House of Assembly has finally revealed a cut in the state’s 2020 budget size by 21.23 percent, following the outbreak of the dreaded Coronavirus(COVID-19).
The original Appropriation Bill passed into law by the House was N155, 459,814,700.82, but, currently brought down to N122, 448,111, 676.00.
This was the content of the Report of Committee on Planning and Appropriation on Review of (MTEF) Medium Term expenditure framework and (FSP) Fiscal Strategy Paper2020-2022 as adopted by the State Assembly.
Looking at the report of the Committee, the chairman and member representing Wushishi Constituency, Hon. Muhammad Lokogoma said the review of indices and other revenue projections led to the reduction in the budget size.
“In carrying out this, the Committee invited the relevant stakeholders, that is the State Planning Commission and Ministry for Finance for interface and this is the basis of this report, ”
He explained that the adjustments in resource projections are in line with current realities.
According to him, the adjustments resulted in a drop in projected Statutory Allocation from N66.79 billion to N40.53 billion, representing 39% fall in the estimated Statutory Allocation.
Other areas, Lokogoma said affected is the Internally Generated Revenue (IGR) reviewed downward from N18.69 billion in the 2020 Appropriation Bill to N14.38 billion, representing 23%.
“The decrease in IGR is due to restrictions on the movement of goods and services as a result of Coronavirus pandemic. ”
The Committee chairman also disclosed that drawdowns from Development Partners which is projected at N50.26 are now N46. 57 billion adding, “it is due to restrictions on international travels and close down of partner’s offices.”
Lokogoma, however, revealed that sources not affected by the review include Dividend from North-South Power, payment National Electricity Liability Company, NELCO, as well as Refund from Federal Roads, PFAs and Family Home Program.