budgets (2)

The federal government has proposed a budget of N4.2 trillion for the 2011 financial year, with a crude oil benchmark pegged at $62 per barrel.Capital expenditure is expected to take N1 trillion while the remaining N3.2 trillion will be gulped by recurrent expenditure.It was confirmed that contrary to earlier reports, the federal government intends to commence a cut in the recurrent expenditure starting from the 2012 financial year. The Presidency was however still tinkering with the budget proposal ahead of its presentation to the joint session of the national assembly today.Meanwhile, the House of Representatives, on Tuesday, approved a request by President Goodluck Jonathan to extend the lifespan of the 2010 budget to March 31, 2011.Mr Jonathan had made the request to the National Assembly two weeks ago, following the row between the House and the Executive arm over the poor implementation of the capital component of the budget.The House had threatened not to consider the 2011 Appropriation Bill until it was satisfied with the implementation of the capital profile of the budget. It however, rescinded the decision last week after the president’s letter.Cutting the work forceIt was learnt that the government can only cut recurrent expediture if things can be reviewed, like the downsizing of the workforce in the ministries, department and agencies (MDAs) of government; and the merging of ministries, and parastatals...Available information also revealed that the government is looking at the prospect of voluntary retirement and payoff for 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 months thing. The government will have to do this gradually and over time,” a top Presidency official said yesterday in an interview.The ministry of finance, as part of steps towards the auditing of staff of the civil service and MDAs had already spent over N12 billion in building a database of staff in 16 MDAs with a view to cover all the MDAs and parastatals of government by the end of the 2011 financial year.“This processes require time,” the source said adding that “people who will be laid off will have to be paid or provided alternative jobs. It has to be planned carefully in order for it not to have a back lash effect,” the source said.It was however gathered that the disproportionate budgeting pattern had been a subject of concern to the Minister of Finance Olusegun Aganga, hence the setting up of a committee in September to review the expenditure pattern and advise government appropriately.The committee, as at the time of finalising the 2011 budget proposal, was yet to turn in its report
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Strange Strange Strange ? what are we celebrating at 50years to deserve any celebrations of such magnitude ?

The Federal Government's 2010 budget proposals submitted by the late President Umaru Musa Yar'adua to the National Assembly last November proposed to spend only N62 million to celebrate this country's 50th Independence anniversary in October but President Goodluck Jonathan's administration later hiked it to N10 billion, Daily Trust's checks revealed. The N10 billion proposal is contained in the 2010 Supplementary Budget proposals sent to the National Assembly by President Jonathan two weeks ago.


In the original 2010 budget proposal, N7.4 million was requested for the Information and
Communication Ministry to celebrate Independence Day, while N52 million was requested for the Interior Ministry and another N2.9 million was voted for the Police Affairs Ministry.

Yar'adua did not plan a lavish 50th anniversary as there were no budget provisions for the Presidency, the office of the Secretary to the Government of the Federation (SGF) or any other ministries that are now to spend billions of naira for the October party.


Last week, the Nigeria Labour Congress (NLC) reacted to the proposed expenditure, describing it as "wasteful." NLC's acting spokesman Onah Iduh said, "We are of the view that the details of the over N10 billion independence anniversary expenditure in the supplementary appropriation bill submitted by the President to the National Assembly contain very frivolous and extravagant items in the context of the mass misery and poverty in the land, particularly under the prevailing cash squeeze due to the global economic crisis which government uses to deny labouring people their legitimate rights."

Daily Trust gathered that soon after the death of Yar'adua, top officials met at the Presidency and decided to mark the 50th anniversary in "a big way." Various ministries and agencies were asked to make submissions, which were then packaged in the supplementary budget bill.

President Jonathan sought the National Assembly's approval for the N10 billion expenditure in the same letter in which he requested the Legislature to make a 40 percent across-the-board but in capital expenditure provisions in the 2010 budget, due to falling oil revenue.

A breakdown of the N10 billion proposals for the anniversary party include N950 million naira for the anniversary parade including march past, fleet review and aerial display, while another N350 million naira will be expended on national unity torch and tour.


First Lady Mrs. Patience Goodluck Jonathan will spend N50 million naira on visits to special homes, orphanages, prisons and selected hospitals, while N20 million will be used in sponsoring a special session of the National Children's Parliament and another N20 million naira will be used to organise a party for 1000 children.

The government will further spend N40 million to organise a Presidential banquet; N50 million for calisthenics performance; N310m for cultural, historical and military exhibitions while N40 million naira will go for what the government called 'food week.' Similarly N320 million naira will be spent on secretariat equipment, accommodation, logistics and utilities while N30 million naira is budgeted for the designing and unveiling of the 50th anniversary logo.


In the same vein, the Ministry of Information and Communications will get N1.2 billion naira for insertion of special reports on Nigeria in both local and international media, whereas another N320 million naira will be spent on jingles, adverts, billboards, documentary and publicity. The Foreign Affairs Ministry will receive N105 million for undisclosed expenditure, later said to be anniversary parties by Nigerian missions abroad.

To mark the 50th independence anniversary of the nation, the government has also budgeted N700 million naira to accommodate and transport special guests both from within and outside the country. Another N450 million naira will be used to finance the production of branded souvenir, gift items for foreign heads of state and personalities and the placing of a large and coat of arms on Aso Rock. Variety Gala night and fireworks will gulp N210 million naira, an international friendly football match and local competition will also gulp N200 million naira while event managers and producers will take home N120 million naira.

Designing and publication of compendium on Nigeria gets N400 million, one on the legislature gets N150 million and another one on the judiciary gets N50 million naira, while commissioning of golden jubilee plaza gets N10 million naira and designing, construction and mounting of Tower of Unity in the 36 states of the Federation gets N540 million naira.

Debates, essays, conferences, lectures and colloquium will gulp N150 million naira, even as musical concerts and carnival in the 6 geo-political zones will cost N60 million naira. Durbar, masquerades and cultural dances will consume N100 million naira and designing and construction of 10 symbolic monuments of founding fathers of Nigeria will cost N80 million naira.

A memory tone at the Tafawa Balewa Square Lagos will consume N40 million, security and protocol will cost N500 million while only N25 million is budgeted for medicals during the anniversary.
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