Iolo: The only way to balance the National budget is to reduce recurrent expenditure. Obviously you know the Government would have to sack staff to accomplish this.

Budgets are balanced by the realities on ground.

Iolo: The only way to balance the National budget is to reduce recurrent expenditure. Obviously you know the Government would have to sack staff to accomplish this.

Budgets are balanced by the realities on ground.

Iolo: The only way to balance the National budget is to reduce recurrent expenditure. Obviously you know the Government would have to sack staff to accomplish this.

Budgets are balanced by the realities on ground.

Pukkah:

Sacking of staff is not the only way to reduce recurrent expenditure.

In any case, why can't unproductive people be sacked? Why can't ghost workers and ghost pensioners be fished out?

A budget that funds recurrent expenditure to the tune of 72% can never develop Nigeria. This unacceptable lopsidedness is one of the reasons people are not feeling the impact of the FG. What can 28% achieve? How can a budget of 72% in recurrent expenditure create jobs?

As at 2006, recurrent expenditure was 66% of the budget and this level was even considered too high then.


Again, this is not Okonjo-Iweala's promise. She did tell us that government was resolved to reduce recurrent expenditure. What's happening!

https://www.nairaland.com/821355/must-cut-recurrent-budget-okonjo-iweala

@op, the recurrent expenditure in the budget is 72% and not 78%.

http://www.punchng.com/news/okonjo-iweala-presents-n4-6tr-budget-to-national-assembly/

simpleseyi:

What about reducing 1.3 billion naira food budget, abolishing 255 million naira bullet-proof second-hand cars, reducing over 2 billion naira travelling expenses, reducing money spent on maintaining 10 or 11 presidential jets? Reducing number of useless aides, why do we have a Reuben Abati and a Doyin Oku-Igbe doing the same dirty job? What of unconstitutional office of first lady with many redundant aides? This also goes down to the states (APC, PDP, APGA, LP) and local governments.

Goddex: Hahahaha. . . so, suddenly Kwakwanso, Wamakko and other PDP renegades are now the toast of APC media? Fools, hypocritical Propagandists. Back to the point anyway

1) State govt's are much smaller units with much less workforce and responsibility than FG. Apart from the huge civil service, just check out the huge military and paramilitary personnel (Army, Civil Defence, Navy, Police, Airforce, Customs, Immigration etc)

2) Not only Kwakwanso, almost all states have budget ratios tilted in favour of Capital.

3) Somebody just compared it with 2006 but forgot that a major upward review of minimum wage of close to 200% was done in 2011 and therefore the recurrent vs capital percentages cannot remain the same again

4) It will take a while to stabilise again. I remember last year after the fuel price hike, inflation rose upto 16% but now it has dropped low to a single digit of 7%

5) This govt parades some of the best Economists in the land. It's funny a times when some of you mumus who know nothing about the workings of govt come here to display your ignorance

6) Besides, some of you came out here supporting a pay rise for ASUU even when we all know our Universities lecturers are already living large. You did that just to sabotage the GEJ but forgot to know that you can never eat your cake and have.

Ikengawo: PDP States.
1] Kano (PDP) owes $61.7million
2] Katsina (PDP) owes $74.6million
3] Akwa Ibom (PDP) owes $61.6 million

4] Cross River (PDP) owes $113million
5] Kebbi (PDP) owes $47.8million
6] Kogi (PDP) owes $33.8million
7] Niger (PDP) owes $29.7million
8] Kwara (PDP) owes $45.5million
9] Kaduna (PDP) owes $215.6million
10] Plateau (PDP) owes $21.9million
11] Rivers (PDP) owes $36.6million
12] Jigawa (PDP) owes $33.6million
13] Gombe (PDP)owes $31.7million
14] Enugu (PDP) owes $50million
15] Delta (PDP) owes $18.9million

APC States.
16] Lagos (APC) owes $611.2 million
17] Nassarawa (APC) owes $36.9 million
18] Ogun (APC) owes $102million
19] Osun (APC) owes $62.7million
20] Oyo (APC) owes $76.6million
21] Edo (APC) owes $42.7 million.
22] Ekiti (APC) owes $36.1million

APGA And Labour State(s)
23] Ondo (LP) owes $51.8 million
24] Imo (APC) owes $51.9million
25] Anambra (APGA) owes $26.7million

http://www.stelladimokokorkus.com/2013/09/lagos-tops-debt-list-of-states-in.html

Pukkah:

Sacking of staff is not the only way to reduce recurrent expenditure.

In any case, why can't unproductive people be sacked? Why can't ghost workers and ghost pensioners be fished out?

A budget that funds recurrent expenditure to the tune of 72% can never develop Nigeria. This unacceptable lopsidedness is one of the reasons people are not feeling the impact of the FG. What can 28% achieve? How can a budget of 72% in recurrent expenditure create jobs?

As at 2006, recurrent expenditure was 66% of the budget and this level was even considered too high then.


Again, this is not Okonjo-Iweala's promise. She did tell us that government was resolved to reduce recurrent expenditure. What's happening!

https://www.nairaland.com/821355/must-cut-recurrent-budget-okonjo-iweala

@op, the recurrent expenditure in the budget is 72% and not 78%.

http://www.punchng.com/news/okonjo-iweala-presents-n4-6tr-budget-to-national-assembly/

Goddex: [size=16pt]Hahahaha. . . so, suddenly Kwakwanso, Wamakko and other PDP renegades are now the toast of APC media? Back to the point anyway

Like APC said earlier and I quote, " If you defect to APC, we will hand over our blue print to you and you must abide by it as your guiding principle"

1) State govt's are much smaller units with much less workforce and responsibility than FG. Apart from the huge civil service, just check out the huge military and paramilitary personnel (Army, Civil Defence, Navy, Police, Airforce, Customs, Immigration etc)

What is Fed Government share of the allocation??-52% (which is more than the States and Lgs shares combined)

2) Not only Kwakwanso, almost all states have budget ratios tilted in favour of Capital.

What is stopping the fed govt from adopting the model
??
3) Somebody just compared it with 2006 but forgot that a major upward review of minimum wage of close to 200% was done in 2011 and therefore the recurrent vs capital percentages cannot remain the same again

What was the price and production rate of crude oil in 2006 vis-a-viz 2013?? Moreover , this was a statement credit to your Economic Lord and Do-No-Bad Ngozi Okonjo

4) It will take a while to stabilise again. I remember last year after the fuel price hike, inflation rose upto 16% but now it has dropped low to a single digit of 7%

Hope you are not living in Mars? Which single digit?? Go to the local markets and tell them so. Nigga stop deceiving yourself even the Government you work for online put it at 13%

5) This govt parades some of the best Economists in the land. It's funny atimes when some mumus who know nothing about the workings of govt come here to display your ignorance!

How does that translate to better economic management? You are simply irredeemable

6) Besides, some of you came out here supporting a pay rise for ASUU even when we all know our Universities lecturers are already living large. You did that just to sabotage the GEJ but forgot to know that you can never eat your cake and have.

Your sheer lack of economic intelligence is baffling! I advise you do not dabble into economic policy discussions next time Who told you what ASUU is fighting for would be captured under Recurrent Expenditure? For your info, ASUU went on strike for the physical development of Universities which would still fall under capital projects in budget segmentation.

[/size]

revolt: one of the hardest things to do is attempting to sack a civil servant, Cos they're statutorily backed up the only solution is to remove the most tasking sectors from government hand ie deregulation and what happened in nitel will simply take place. okonjo tried some of these and people went to occupy ojota. Nigerians are myopic bunch, that shoots themselves in the foot. demagogues sway them cheaply

Pukkah:

At first I wanted to ignore your post because of its arrogance. Why would you label people posting here as 'mumus' who don't know the workings of the government? Do you know them?

The most knowledgeable people don't write off others or make condescending remarks about them.

Now to the topic.

All the points you made will be cancelled by this words from none less than Vice President Namadi Sambo. Hear him:

"The recurrent expenditures will be trimmed further from 71.5 per cent in 2012, to about 68.7 per cent in the 2013 budget, while the capital vote is expected to increase to 31.3 per cent from 28.5 per cent in 2012."

http://www.punchng.com/business/business-economy/well-reduce-recurrent-expenditure-to-68-7-sambo/

What's your comment on this? Why is the ratio worsening? You claimed minimum wage was effected in 2011 but Sambo made his remarks after then!

Where is the effect of the reduction in fuel subsidy payments on recurrent expenditure?

You also mentioned minimum wage. Didn't states implement the minimum wage?

You mentioned inflation rate. Did the inflation rate affect only the FG? It's good anyway that you said the rate later stabilized.

There's no point politicizing this topic. Nigeria belongs to all regardless of political party divide. It's pointless to label anyone with a dissenting view as haters, opposition or enemies.

Goddex: [size=16pt]Hahahaha. . . so, suddenly Kwakwanso, Wamakko and other PDP renegades are now the toast of APC media? Back to the point anyway

1) State govt's are much smaller units with much less workforce and responsibility than FG. Apart from the huge civil service, just check out the huge military and paramilitary personnel (Army, Civil Defence, Navy, Police, Airforce, Customs, Immigration etc)

2) Not only Kwakwanso, almost all states have budget ratios tilted in favour of Capital.

3) Somebody just compared it with 2006 but forgot that a major upward review of minimum wage of close to 200% was done in 2011 and therefore the recurrent vs capital percentages cannot remain the same again

4) It will take a while to stabilise again. I remember last year after the fuel price hike, inflation rose upto 16% but now it has dropped low to a single digit of 7%

5) This govt parades some of the best Economists in the land. It's funny atimes when some mumus who know nothing about the workings of govt come here to display your ignorance

6) Besides, some of you came out here supporting a pay rise for ASUU even when we all know our Universities lecturers are already living large. You did that just to sabotage the GEJ but forgot to know that you can never eat your cake and have.[/size]

Iolo:

I should have said that cutting staff strength is the only way to significantly reduce recurrent expenses. Its not the only way like you've said but no other option would give you anything more than 100 billion savings at best.

Since 2006, a lot of things have changed. We now have an armed forces and police that gulp approx 1 trillion naira yearly. Our civil service has gained some weight as we also have more agencies.

Cutting staff is always a touchy issue for governments but its the best means to reducing recurrent expenditure. This is why companies in financial trouble tend to cutdown staff before doing anything else. But with a government you have the trade unions and NLC that would fight any moves to sack workers. To make matters worse, in Nigeria it almost seems like a birthright for civil servants to retain their positions till they die. We have that mentality that Government has enough miney to go round so the civil service is a piece of the national cake for the common man.

Ikengawo: PDP States.
1] Kano (PDP) owes $61.7million
2] Katsina (PDP) owes $74.6million
3] Akwa Ibom (PDP) owes $61.6 million

4] Cross River (PDP) owes $113million
5] Kebbi (PDP) owes $47.8million
6] Kogi (PDP) owes $33.8million
7] Niger (PDP) owes $29.7million
8] Kwara (PDP) owes $45.5million
9] Kaduna (PDP) owes $215.6million
10] Plateau (PDP) owes $21.9million
11] Rivers (PDP) owes $36.6million
12] Jigawa (PDP) owes $33.6million
13] Gombe (PDP)owes $31.7million
14] Enugu (PDP) owes $50million
15] Delta (PDP) owes $18.9million

APC States.
16] Lagos (APC) owes $611.2 million
17] Nassarawa (APC) owes $36.9 million
18] Ogun (APC) owes $102million
19] Osun (APC) owes $62.7million
20] Oyo (APC) owes $76.6million
21] Edo (APC) owes $42.7 million.
22] Ekiti (APC) owes $36.1million

APGA And Labour State(s)
23] Ondo (LP) owes $51.8 million
24] Imo (APC) owes $51.9million
25] Anambra (APGA) owes $26.7million

http://www.stelladimokokorkus.com/2013/09/lagos-tops-debt-list-of-states-in.html

Kingspin: The headline is laughble. To me, it look like a personify beef. Is a party?.

Sincere 9gerian: Removal of fuel subsidy alone would balance the federal budget to about 50% capital versus 50% recurrent expenditure. Ghana has already removed fuel subsidy but because of dirty, evil and tribal politics we have not done the needful in Nigeria. Shame on all those who supported the retention of fuel subsidy in Nigeria. And these are same people that shamelessly compare Nigeria with Ghana but they conveniently forget that while Ghana was taking difficult but necessary steps to move their country forward, Nigeria was busy playing dirty politics.

Iolo:

I should have said that cutting staff strength is the only way to significantly reduce recurrent expenses. Its not the only way like you've said but no other option would give you anything more than 100 billion savings at best.

Since 2006, a lot of things have changed. We now have an armed forces and police that gulp approx 1 trillion naira yearly. Our civil service has gained some weight as we also have more agencies.

Cutting staff is always a touchy issue for governments but its the best means to reducing recurrent expenditure. This is why companies in financial trouble tend to cutdown staff before doing anything else. But with a government you have the trade unions and NLC that would fight any moves to sack workers. To make matters worse, in Nigeria it almost seems like a birthright for civil servants to retain their positions till they die. We have that mentality that Government has enough miney to go round so the civil service is a piece of the national cake for the common man.

Pukkah:

For example, Sanusi Lamido once made the following statements:


“At the moment 70 per cent of Federal Government’s revenue goes for payment of salaries and entitlement of civil servants, leaving 30 per cent for development of 167 million Nigerians. That means that for every naira government earns, 70 kobo   is consumed by civil servants."

Is this not scary? What's government's plan to address this bad case?
?

since_1914: Even government agencies that are capable of funding part of their own expenditures will fold their hands and wait for Ministry of Finance to fund them. Take the case of Nigerian Embassies for instance, how much do they remit back to the Federation account from the Visas fees and other levies that are being collected.

If I were the President, I will insist that most of these MDAs finance at least 15 to 20 percent of their own budgets. The minister needs to assist some of these agencies to become profitable; an agency like the National Bureau for Statistic for instance has the capacity to raise a part of its budget by commercializing its data.

At least, 11 of the agencies have been declaring losses every year and, therefore, have not been remitting anything to the CRF. They included agencies widely known by the public as veritable cash cows for the federal government.  For the past three years, notably, high-flying, huge revenue generators like the NNPC, Customs Service, BPE, NIMASA, NERC, FAAN, Nigerian Immigration Service (NIS) and Nigerian Broadcasting Commission (NBC) have not paid a kobo into the CRF. The Federal Inland Revenue Service (FIRS), rather than pay its operating surplus to the CRF as listed by law, has been sending it to the Federation Account.
Other government agencies on FRC’s list that have not been sending anything in are the National Agency for Science and Engineering Infrastructure (NASEI), Nigerian Social Insurance Trust Fund (NSITF), National Sugar Development Council (NSDC), Nigerian Tourism Development Corporation (NTDC), National Agency for Food and Drug Administration and Control (NAFDAC), National Business and Technical Examination Board (NABTEB) and National Oil Spill Detection and Response Agency (NOSDRA).

Some other bodies, not complying entirely with the FRA, have been remitting their operating surpluses epileptically. They include the Central Bank of Nigeria (CBN), which, claiming autonomy, says it operates a budget approved by its governing board, and didn’t remit any surplus in 2009. It did pay in N31 billion in 2010 and N64.12 billion the following year, though.

The Nigerian Ports Authority (NPA) remitted N2.89 billion in 2009 but has since been defaulting. The FRC 2011 report emphasised that “buoyant agencies such as SEC and NPA have declared operating profit only once or twice in four years.” Indeed, the Securities and Exchange Commission (SEC), is a fellow traveller with the NPA, remitting only once, in 2009, the sum of N1.92 billion.
The Nigerian Civil Aviation Authority (NCAA) also paid in N80 million and N255.43 million in 2009 and 2010 respectively, but didn’t remit any amount in 2011, as did the Nigerian Postal Service (NIPOST), which also remitted N34.45 million and N109.15 million in 2009 and 2010 respectively but was absent on the compliance roll the following year.
Other two-time payees on the FRC list are the Nigerian Shippers Council (NSC), which remitted N52.05 million and N74 million in 2009 and 2010; and the National Automotive Council (NAC), which sent in N44.92 million and N17.31 million, also for those two years.

The report noted that “virtually all the corporations indulged in creative accounting by inflating their costs and, thereby, reducing their operating profit.” Moreover, the government agencies wily run two accounting practices; one, the accrual accounting and the other, cash basis. They then craftily apply the cash basis accounting which reports loss or low profit to determine their operating profit figures that they submit to the CRF and FRC.

Chairman of the House of Representatives committee on Services, Hon. Yakubu Doghara recently, in an interview with this publication, accused the Executive of annually spending far beyond what it tells Nigerian in the Appropriation Act. Doghara said that the President Goodluck Jonathan administration might be spending up to N12 trillion every year, dipping its hand into undeclared revenues earned by rich key agencies like the NNPC, NPA and NIMASA.