The federal government has revealed that it will cut N1.5trn from the proposed N10.59trn 2020 Appropriation Act.
This was confirmed yesterday (March 18) by the Minister of Finance, Budget and National Planning, Zainab Ahmed after the FEC meeting. She said the cut from capital expenditure stood at 20 %; while recurrent expenditure would incur 25%.
“We’ve written every ministry and given them guidelines on how these adjustments will be made to enable us have detailed inputs from the ministries.
“But I can just say that the bulk cut is about N1.5trn, the reduction in the size of the budget. And this includes N457bn from PMS under-recovery.”
She said government recruitment exercises will come to a halt, however, workers will be paid their salaries and not be sacked.
She further said:
“On recruitment, there is already an instruction to stop recruitment. What the agencies have been doing is replacement but even that is being suspended. When things improve, we will go back to the issue of recruitment. But for now, our wage bill is already very high.
“The president has directed that salaries and pensions must be paid unfailingly. So, we are not looking at downsizing in any way. We are maintaining our workforce as it is. But we are just stopping the increase in the size of the nominal roll.”
This reduction is coming after the minister revealed that the ongoing coronavirus pandemic might lead to reduction of the 2020 budget.