Ekiti government, on Tuesday, announced the restoration of 100 per cent monthly subvention to Ekiti State University Teaching Hospital (EKSUTH), beginning from August.
The Commissioner for Information and Values Orientation, Mr Akin Omole, in a statement issued in Ado-Ekiti, said the development was part of government’s decisions at the August edition of State Economic Review Committee (ERC) meeting.
Omole said that the committee was constituted, sequel to the agreement reached with labour leaders in June, to deliberate on the state’s monthly finances and suggest ways forward.
“Economic Review Committee (ERC) was designed to meet monthly (five days after Federation Account Allocation Committee’s release) and keep labour abreast of the financial position of the state and actions to be taken,” he said.
According to him, the decision to restore full subvention was part of measures to mitigate the impacts of COVID-19 pandemic as well as the shortfall in the federal allocation and the state’s internally-generated revenue (IGR).
He listed other measures taken at the ERC meeting to include: restoration of consequential adjustment on minimum wage for officers on grade levels 7, 8, 9 and 12, which was hitherto put on hold, due to shortfall in federal allocation.
Another measure was the increase in subvention to Ekiti State University, Ado-Ekiti (EKSU) and Bamidele Olumilua University of Education, Science and Technology, Ikere-Ekiti (BOUESTI) from 50 per cent to 60 per cent, which would be reviewed upward in September.
Also, the retention of 25 per cent reduction in the salary of all political office holders, including Permanent Secretaries and Executive Secretaries was part of the measures.
Omole said that government realised that the net allocation received from FAAC could not accommodate the state’s proposed expenditure for August.
He also said that the budget analysis showed that the development was due to other obligations, such as payment of counterpart fund for water project and outstanding judgment debts.
“These and other urgent government commitments required over N400 million,” he said.
Omole said that the emerging trend became noticeable after the Commissioner for Finance and Economic Development, Mr Akin Oyebode, had presented the detailed analysis of the federal allocation received for August to ERC meeting.
The commissioner commended labour leaders in the state for their sacrifice and understanding, and the citizens for their cooperation with government to navigate through the period of financial challenges.
He said that the welfare of workers in the state remained government’s top priority.
Omole also said that the present administration had no plan to downsize the workforce or retrench any worker owing to the financial challenges facing the state. (NAN)
