By Daniel Idonor
ABUJA—AHEAD of this morning’s presentation of the 2011 budget to the joint session of the National Assembly, the Federal Government is proposing a N4.2 trillion Appropriation Bill for the 2011 financial year, with a crude oil benchmark pegged at $62 per barrel.

Vanguard learnt that the government is proposing a capital expenditure of N1 trillion while the recurrent expenditure is to gulp N3.2 trillion.

Impeccable sources indicated that contrary to earlier reports, the Federal Government intended to commence a cut in the recurrent expenditure beginning from the 2012 financial year.

It was further learnt that the Presidency was still tinkering with the budget proposal ahead of its presentation to the joint session of the National Assembly.

Vanguard was told that before the government can successfully cut the recurrent expenditure it needs to review a few things such as downsizing of the workforce in the ministries, departments and agencies, MDAs, of government as well as merging of ministries and parastatals.

Voluntary retirement
Vanguard further noted that the government was looking at the prospect of voluntary retirement and payoff for civil servants who are willing to leave the service.

A top Presidency source said: “All these are cost saving measures but they are things that cannot be done overnight. It is not a six months thing. The government would have to do this gradually and over time.”.

Already, the Ministry of Finance, as part of steps towards the auditing of 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 parastatals of government by the end of the 2011 financial year.

The source noted: “This processes require time. People who would be laid off would have to be paid 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, Dr.  Olusegun Aganga, and apparently forced him to set up a committee last September to, among other things, review the expenditure pattern and advise government appropriately.

The committee, which has some of the best Nigerians with excellent financial track records was, at the time of finalising the 2011 budget proposal, yet to turn in its report.