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Bullion

Keywords

Budget, Monetization, Civil service.

Abstract

Monetization is the conversion of benefits previously made available in kind to public officers into cash payment. This paper examines the monetization policy introduced in the 2004 Budget, the impact of monetization on the budget and the effect of monetization on beneficiaries. Finally, It must be realized however, that the cost of so me of the benefits that will no longer be provided by the government will have to be made good by the erstwhile beneficiaries. Also, the amounts being paid out for the monetized items are set at less than their market value. While such a measure would exert so me downward pressure on the market price of the items, the reduction in price may not be as much as to bring the overall cost down to the level of the allowance now being paid to the beneficiaries in that regard. The beneficiaries would therefore have to come up with the shortfalls. It is necessary to realize the burden inherent in the transfer of part of such costs to the erstwhile beneficiaries, since the issue may need to be taken into co n side ration in subsequent years.

Author Bio

The author is the Head of the Civil Service of the Federation.

Publication Title

CBN Bullion

Issue

2

Volume

28

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