2021 Budget: N4tr borrowing to finance N5.16tr deficit worrisom-Expert

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Abuja Chapter Chairman of the Chartered Institute of Bankers of Nigeria (CIBN), Prof Uche Uwaleke has picked holes in the 2021 appropriation bill submitted to the joint session of the National Assembly by President Muhammadu Buhari on Thursday, saying that new borrowings of over N4 trillion to part finance a deficit of over N5 trillion was worrisome given the already huge amount of over N3 trillion allocated to debt servicing alone.

In his reaction to the budget proposal, Uwaleke, who is also Nigeria’s first professor of the capital markets further noted that the deficit to GDP should have been kept within the 3% threshold stipulated in the Fiscal Responsibility Act 2007, despite the ravaging COVID-19 pestilence.

He hoped that the National Assembly will consider any amendment within the budget envelope of N13.08 trillion and not to end up jerking up the figure.

He said: “I also think the real GDP growth rate projected at 3% is a little ambitious in view of the impact of COVID-19 on the economy expected to linger till next year. This is why the recent Fitch report on Nigeria projects a GDP growth rate of 1.3% for the country in 2021”.

Inspite of the above, Uwaleke was happy that the budget proposal seems to have set the right priorities with the bulk of capital spending going to Works and Housing, Power and Transport.

He added that for the first time in many years, the capital allocation to education and health was above that of defense.

He commended the executive arm for submitting the budget proposal in good time that allows the National Assembly sufficient period to consider and pass the appropriation Bill.

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“I think the assumptions and budget parameters are realistic except for the Exchange rate of N379 to the dollar that may not hold due to the on-going process of unifying Exchange rates across all forex windows by the CBN consistent with the IMF prescription”, Uwaleke stated.

About Nwankwo Paschal 52 Articles
Nwankwo Paschal is a young and passionate gentleman that likes to explore in different aspect of life. He is an advocate of good governance and will always do everything possible to make sure that the masses gets what they deserve from their leaders, through a sound media advocacy. He is currently the leader of 9NEWS.NG reporters in Anambra state and have worked for many organizations as a media director. He is talented when it comes to article writing, blogging, graphic design and many other ICT skills which he possess. Despite being a medical professional, he still do well in media and publications. His ideology in media Report is giving you the information that others are hidding from you. You can contact/chat him for News coverage, Informations or interviews using: 08135208682 or send a mail to ptechcreativity@gmail.com. You can follow him in different social media platforms: follow him on Twitter (@Nwankwopaschal), like his Facebook page (Nwankwo Paschal), follow him on Instagram (@ptechmedia). If you want to be getting all our news updates on WhatsApp, do well to add him up.

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