The chairman of the Senate Army Committee, Ali Ndume, called the federal government’s decision to borrow more funds to finance the 2022 budget worrying.
Next year’s budget of 16.39 trillion naira presented by President Muhammadu Buhari on Thursday has a deficit of 6.26 trillion naira.
Nigeria’s N16.39trn budget proposal raises more questions, less hope
Finance Minister Zainab Ahmed said the government would get more loans to finance the deficit.
Senator Ndume, in a statement on Saturday, said the government’s proposal to fund the budget by borrowing more is concerning.
Instead, he advised the executive to cut personal and recurring costs; increase revenue and stop leaks.
The estimated recurrent expenditure budget for the projected year, which is 6.83 billion naira, represented 41.7% of the total expenditure budget.
“It’s always on the safe side,” Ndume said.
He also advised that “the Presidential Economic Advisory Committee and financial experts should be actively involved in debt management and the reassessment of our debt profile.”
Senator from Borno Sud, however, praised Buhari for prioritizing spending on defense and security, infrastructure and education, with the sectors securing a combined allocation of 5.15 trillion naira in the 2022 budget. .
From the proposal, defense and security obtained 2.41 billion naira (15%); infrastructure 1.45 trillion naira (8.9%); education 1.29 trillion naira (7.9%); health 820 billion naira (5%) and social development and poverty eradication 863 billion naira (5.3%) of the total allowance.
Ndume urged the president to pay more attention to the effective, transparent and accountable implementation of the budget by MDAs once passed so that the impact is visible to Nigerians.
“The National Assembly should also be more active in exercising its oversight function to ensure effective implementation of the budget,” he added.