The State Government of Osun on Tuesday proposed to scale down its 2020 budget from one hundred and nineteen billion, five hundred and fifty million Naira (#119.6bn) to Eighty two billion, two hundred and twenty nine million (#82.2bn).
The appropriation ammendment Bill 2020 by the Governor of Osun, Mr. Adegboyega Oyetola seeking for a review of the already passed 2020 budget passed through the second reading at the house plenary.
The Speaker, Osun House of Assembly, Rt. Hon. Timothy Owoeye had read on the floor a letter from the governor titled “2020 Ammended Appropriation bill of the state of Osun”.
It read in part”Mr Speaker and distinguished members will recall that year 2020 Appropriation bill was passed into law on Tuesday, 24th December 2019 and assented to on 30th December, 2019.
“The size of the budget was one hundred and nineteen billion, five hundred and fifty million, four hundred and one thousand, forty Naira.
“However, the global COVID-19 pandemic which has badly affected all sectors of the economy has paved way for a review of the year 2020 budget. It is pertinent to inform you that the global lockdown which doesn’t exonerate the state of Osun has affected all the revenue variables including the IGR and proceed from the Federation account.
“As a result of this, the year 2020 approved budget of all Agencies of government has been reviewed downward to accommodate the current social and economic realities with focus on COVID-19 responsive activities”.
The Speaker added that the presented draft bill in the sum of #82,229,070,760.00 will have #9,442,503,260.00 which is 11.5percent is dedicated to fighting COVID and post COVID recovery activities.
He stated that the governor in the draft ammendment Bill hinted that the revised budget has already been over- stretched considering the drastic reduction in the IGR of the state and the Federation Account Allocation fund as a result of the lockdown multiplier effect.
The bill having scaled through the second reading, the Speaker said, “The ammendment is inevitable, the drop in revenue has greatly affected every facet of the economy. The need to streamline the approved 2020 budget to the current social and economic realities of COVID-19 is sacrosanct.
“The streamlining of all programs of government and the need to focus the state’s priorities toward management and recovery from the pandemic makes it compulsory that the budget be reviewed”.
The budget was however committed to the House Committee on finance and appropriation.