House of Representatives has urged President Goodluck Jonathan to reduce the cost of governance by reducing the number of existing agencies and parastatals with overlapping functions.
The lawmakers made this charge while debating the general principles of the 2012 N4.79 trillion budget yesterday before scaling it through to the second reading.
This was even as they okayed the state of emergency declared by the president in somes States in the North.
Out of the N4.79 trillion, N397,929,101,917 is for statutory transfers, N559.580 billion is debt service, N2,471,814,067,337 is for recurrent (non debt) expenditure while the balance of N1,319,777,651,919 is for contribution to the development fund for capital expenditure for year ending on the 31st December 2012.
Leading the debate, leader of the House, Hon Mulikat Akande-Adeola, noted that the proposed budget would consolidate past budgets and develop priority sectors including security, power, manufacturing, human capacity development among others.
She noted that the 2012 budget proposal reflected modest increase of six percent over the N4.484 trillion appropriated for 2011 fiscal year and capital share of about 28 percent of total expenditure against 26 percent in the previous year while share of recurrent expenditure for 2012 was 72 percent down from 74.4 percent in 2011.
According to her, aggregate expenditure comprise N398 billion for Statutory Transfers; N560 billion for Debt Service; N2.472 trillion for Recurrent (Non-Debt) Expenditure; Capital expenditure has an allocation of N1.32 trillion representing a 15 percent increase while the fiscal deficit projected at about 2.77 percent of GDP against 2.96 percent in 2011.