Kano State Governor, Abdullahi Umar Ganduje, has signed the reviewed 2020 budget into law.
The Financial Management Law, which guides the State’s financial engagement and management for sustainable development, has also been reviewed and signed by the governor.
It was gathered that the new budget for the 2020 fiscal year is to cater for the aftermath of Coronavirus.
Ganduje said he signed the budget document after it had passed through the stages of legislation by the State House of Assembly members.
The Kano State government had earlier proposed to spend over N200 billion this year, predicated on macroeconomic assumptions expected to be stable.
The initial budget was 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, it was learnt.
But 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. With the current economic predicament, caused by the Coronavirus, the budget expectations have been rendered unrealistic and ineffective. The budget was then slashed down to N138.3 billion.
A breakdown of the new financial appropriation law has N78.8 billion for Recurrent Expenditure and N54.9 billion for Capital Expenditure.
“We are all aware that due to COVID-19 pandemic, especially with the lockdown of the state for over a month, our sources of revenue generation were drastically reduced. So also other financial allocations accruing to the State.
“For this reason, we need to have a realistic budget that will cater for post COVID-19 period,” Ganduje said after signing the reviewed budget.