Economy

Reactions trail President Buhari’s Budget Proposal

Some experts in Ibadan, Oyo State capital have expressed mixed reactions over the 2020 budget proposal presented by President Muhammadu Buhari to the National Assembly.

 An economist at the Nigerian Institute of Social and Economic Research, NISER, Ibadan, Dr. Luis Chete said the choice of embarking on borrowing should not be condemned as nations of the world undertake borrowing to finance development.

 Dr. Chete, while advising government to improve its internally generated revenue rather than constantly embarking on borrowing, stressed the need to block various financial leakages.

 Speaking on the implications of the seven point five percent vat increase as means of generating fund, Dr. Chete said the idea would affect companies and manufacturers, as well as individual consumers as this might lead to inflation.

 In their separate remarks, two lecturers in the Department of Agricultural Economics, University of Ibadan, Dr. Olubunmi Alawode and Dr. Yetunde Oladokun said Federal Government should let the budget achieve the focus of sustaining growth through job creation.

They commended the present administration for ensuring January to December budget cycle implementation.

The 2020 budget proposal increased by one point five trillion naira compared to 2019 put at eight point eight trillion naira.

Breakdown of the budget show that debt service is estimated at two point four five trillion, statutory transfer is five hundred and fifty six point seven billion while works and housing got the lion share put at two hundred and sixty two billion naira.

Rotimi Famakin

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