Ahead of President Goodluck Jonathan’s presentation of the 2011 budget before the National Assembly today, Daily Sun can authoritatively report that the Federal Government has proposed N4.2 trillion budget with the crude oil benchmark pegged at $62 per barrel. Daily Sun findings reveal that capital expenditure is expected to take N1trn while the recurrent expenditure will gulp N3.2 trillion.
It was also gathered that contrary to earlier reports of plans to cut the recurrent expenditure in the budget, government is proposing its commencement from the 2012 financial year.
Daily Sun further learnt that before government could conveniently cut the recurrent expenditure, it would have to cut down on certain expenditure including the downsizing of the workforce in the ministries, departments and agencies (MDAs) of government, merging of ministries, and parastatals. It was also gathered that government was considering voluntary retirement and payoff of civil servants who are willing to leave the service.
“All these are cost saving measures but they are things that cannot be done overnight. It is not a six- month thing. Government would have to do this gradually and over time,” a top presidency source said yesterday.
Already, the ministry of finance, as part of steps towards the auditing staff of the civil service and MDAs has already spent over N12 billion in building a database of staff in 16 MDAs with the drive to cover all the MDAs and paratstatals of government by the end of the 2011 financial year.
According to the source, “These processes require time. People who would be laid off would have to be paid off and in other cases, alternative jobs would have to be provided for such people. It has to be planned carefully in order for it not to have a back lash effect.”
The disproportionate budgeting pattern has been a subject of concern to the Minister of Finance, Olusegun Aganga, consequently, in September, he set up a committee to among other things review the expenditure pattern and advise government appropriately.
The Committee, which was said to have some of the best Nigerians with excellent financial track records as at the time of finalising the budget proposal.
turn in its report.
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