According to reports reaching OYOGist.com the Oyo State government is set to re-prioritise its expenditure and cut its 2020 budget to survive the impacts of oil price crash in the international market.
The Chief Economic Adviser to the Governor, Dr Musbau Babatunde, made the disclosure in an interview with the News Agency of Nigeria in Ibadan, yesterday.
He said that since the price crash had affected the Federal Government’s revenues from oil, it would also have adverse effect on monthly allocations to states in the country.
According to Babatunde, even the Federal Government may need to have what he calls an implicit deficit, so that it can be able to maintain its recurrent expenditures.
He also said that the government would have to maintain critical overhead expenditures for states, such as education and healthcare services.
“At this particular level, government has to try to reduce exposure to foreign exchange-related activities.
“This is because the exchange rate in Nigeria is being defended by the Central Bank of Nigeria (CBN) in order to maintain the exchange rate at a sustainable level.