Fanen Ihyongo, Jalingo
The Taraba State Government has disclosed plans to reduce its 2020 budget because of the prevailing economic meltdown occasioned by the COVID-19 pandemic.
Commissioner for Budget and Planning, Solomon Elisha, stated this in a briefing on Monday in Jalingo, capital of Taraba.
The state had passed a budget of N215.8 billion for the 2020 fiscal year predicated on macroeconomic assumptions expected to be stable.
Governor Darius Ishaku has approved a downward review of the budget, to give priority to more beneficial and profitable activities that will impact more positively on Taraba people, it was learnt.
Elisha explained the budget was initially based on daily crude oil output of N2.1 million barrels at $56.50 per barrel, and at the exchange rate of N305 to the US dollar.
“However, with the current economic predicament, following the outbreak of the novel Coronavirus, our budget expectations have been rendered unrealistic and ineffective.
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“The daily crude oil production of the country is now less than a million barrel. The crude oil price per barrel has also plummeted to an all-time low from over $56 to be fluctuating between $20 to $30.
“This gloomy scenario means our monthly receipt from the federation account is bound to decline in the long run. And at the same time, it has undermined our Internally Generated Revenue (IGR) efforts, as a result of the lockdown which has crippled all economic activities in the state,” he said.
The commissioner disclosed that “the state will look inward by taking practical and proactive measures” in line with the present realities.
He said the process of reviewing the budget will require a thorough brainstorming by the commissioners and heads of agencies as well as members of the State House of Assembly.
“It therefore means, given the negative impact of the pandemic on our economy, there is the urgent need for us to reorder our priorities by redirecting scarce resources to areas that will impact more meaningful on the lives of the citizens,” Elisha said.
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