In a fresh development, the Imo state government has finalised on the state’s budget review thereby arriving at the decision to slash the state’s budget from ₦140bn to a considerable ₦89bn.
Imo State, Commissioner for Information and Strategy, Declan Emelumba who made the announcement yesterday at the Sam Mbakwe Executive Council Chambers, Government Hous told newsmen that on the directives of the State Governor, Senator Hope Uzodinma, the council had decided to trim the state budget to align with the economic discrepancies which the state is going through.
He said that the Federal Allocation and the State Internally Generated Revenue (IGR) have been negatively affected by the economic crunch made worse by the COVID-19 pandemic that has affected the oil revenue.
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He informed that the recurrent revenue was reduced by 40 percent, from ₦32b to 19.6b and that the personnel cost was increased from ₦8.9b to ₦9.7b, whereas subventions were reduced by 47 percent, that is from ₦33.8b to ₦17.8b.
Emelumba stressed that the objective is to enable the state government fund its projects effectively through IGR, saying that what the state wants do is to harness all her sources of IGR base.
The memo read:
2. We have also realised that there is need for us to leverage on our various sources of Internally Generated Revenue (IGR) to carryout our laudable projects in the State, in the face of our current reality occasioned by dwindling oil prices and reduced Federal allocation.
4. Furthermore, we set up a criteria for the resumption of schools, especially for those in critical examination classes in line with the Covid-19 protocols.