Senators yesterday criticised the N10.33 trillion 2020 budget
presented by President Muhammadu Buhari for lacking the capacity to
boost growth, declaring they would “take over” and “redirect” the
economy.Leading the debate, Senate Majority Leader Yahaya Abdullahi
said: “The Capital Budget to GDP Ratio is rather too small, (about two
per cent of GDP).” According to him, “The injection of this amount is a
mere drop in the ocean and is incapable of stimulating the economy to
higher growth, wealth creation and employment generation.”
He noted: “The projections of increased oil production averaging 2.18
million barrels/day, in the medium term, are subject to very high risks
that have had devastating consequences in recent times. Volatility,
both at the international market and in the Niger Delta, is a factor
that could make these expectations only tentative.”
Abdullahi reviewed the allocation for capital development in the
budget bill, saying: “When viewed in terms of per capita, the 2020
capital expenditure of N2.46 trillion, is paltry.” He argued that the
projected high deficit of N2.18 trillion for 2020 is a direct function
of the economy-wide revenue shortfall, as well as the choice and cost of
borrowing.
“Government, particularly the collecting agencies, must improve on
their collection capacity. But to do this, there must be robust
investments in the real sector so that it could grow to earn taxable
revenues.”He faulted the Central Bank of Nigeria’s “baffling” pursuit of
restrictive monetary policy “in the face of a clear economic necessity
to reflate the economy, particularly by ensuring cheap money to power
the real sector of the economy.”
“I have, on the floor of this chamber, repeatedly called for the
realignment of the country’s monetary and fiscal policies to ensure the
right structural momentum in the economy,” he said.
Minority Leader Enyinnaya Abaribe rose to speak thereafter, thanking
Abdullahi for making his (Abaribe’s) job easier. He described a fiscal
plan as “nothing but a budget of taxation,” wondering how Buhari could
talk about job creation, having failed to invest in things that create
jobs.He said: “Debt servicing, as a component, is higher than capital
expenditure,” noting that the projected growth, as read by the
president, is 1.9 per cent less than the population growth of 2.6 per
cent.
“So, if you look at it globally, we are still struggling. That is why
I was very happy when the Senate Leader said we may have to take over
and redirect the economic policy of this government, having seen that
the executive has not done anything.”Senator Gabriel Suswam warned that
the economy should not be allowed to deteriorate further. “Our economy
has come to a level that this Senate needs to take over and redirect its
affairs,” he said. He further expressed concern that persistent
borrowings would increase budget deficit.
Former Deputy Senate President Ike Ekweremadu advised lawmakers to
fashion out a good budget that would grow the economy. “The president
has done his job,” he said but added: “It is left for us to subject the
budget to legislative scrutiny. We can’t blame the president if we fail
to subject the budget to scrutiny.”
He further expressed disappointment that at a time the nation is
seeking ways of diversifying its economy, the budget failed to place
ample emphasis on solid mineral development.On his part, Senator Adamu
Alewo (APC, Kebbi State) regretted that the budget does not address
poverty. “The level of poverty is still very high therefore we should
monitor whatever vote is allocated for social investment programmes,” he
said.
He suggested increasing the benchmark from $57 per barrel to $60 per
barrel to tackle poverty. He also urged the National Assembly to address
the imbalance in the distribution of projects across geo-political
zones.Senator Thompson Sekibo (PDP, Rivers) said Buhari should have
pegged the budget at N8.1 trillion, advising: “Let us restrict ourselves
to the money we can generate.” Besides, he noted that the president’s
statistics on GDP and inflation reduction are very unrealistic.
In another reaction to the budget, the Chairman of the Society for
Analytical Economics, Prof. Godwin Owoh told The Guardian that the
president should have reflected the expected half-year spillover that
would be cut off in the event that the 2020 plan comes into force on
January 1 next year.
“There should be a quantitative recall of the cut-off value, so that
it can be reflected on the spending items of the current budget, failing
which might lead to abuse because this is already approved spending.
Alternatively, he has to present a bill to extinguish the spillover
spending, to avert a situation where this spending will be outside the
government’s financial control and might affect economic variables,”
Owoh said.
But the budget received commendation from Alhaji Shehu Kawo, a
chieftain of the ruling All Progressives Congress in Niger State, who
described it as “well focused.”
Speaking during an interview with the News Agency of Nigeria (NAN) in
Minna yesterday, he said the content of the budget and its distribution
to various sectors evidenced commitment, seriousness and
transparency.He added that the early submission of the budget to the
National Assembly would give the lawmakers ample time to work on the
proposed estimates.
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