The Bauchi State governor is proposing to slash it’s 2020 budget of N167, 215, 807, 500 by 50 per cent.
The commissioner for Budget and Economic Planning, Aminu Gamawa, made this known at a press briefing on Wednesday.
He said the state government has also approved the creation of a Stabilisation account to begin saving in preparation for tough times ahead in addition to massive investment in agriculture.
The State he said depends on monthly Federal allocation from Abuja to survive the global fall in prices of crude oil currently affecting the world economy.
The decision to cut the budget, he said was made at an earlier meeting of the State Executive Council on Wednesday Chaired by governor Bala Mohammed.
“In the meeting my ministry presented two memos. The first memo was on the 2020 budget. The 2020 budget was signed by the governor in December 2019. Unfortunately after the signing there was an outbreak of CoronaVirus pandemic which has distorted and destabilised the global economy,” he said
“Most of the assumptions that we have made regarding the revenues that will come to the state in the 2020 budget happen to be affected by the outbreak of COVID19.
“For example the price of crude oil which is the major source of income in Nigeria and Bauchi State has fallen and continue to fall. This is a very serious revenue crisis for the country Bauchi State. What that means is that the projection we earlier made that the price oil will be 57 dollars is no longer tenable”
The Commissioner explained that the memo from his ministry highlight the impact of the COVID19 on the global economy and made some recommendations, including saving for the raining days.
“Some of the suggestions we have made is that Bauchi State is going to review its 2020 budget and the coucil and the governor has approved that the 2020 budget should be reviewed to be more realistic.
“We are also going to open a stabilisation account and the governor has approved it. The Office on the Accountant General has been directed to create the stabilisation account that the state can put some money for the raining days.
“We also agreed to cut down on unnceesasry and wasteful spendings. The idea is that this is not luxury but time to collectively prepare for the tough days ahead of us”