Expect more borrowing to finance N 6.258 trillion deficit, says the federal government -2022 budget.
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This was disclosed after the federal executive council (FEC) approved N16.39 trillion for the 2022 Appropriation Bill. The minister of finance, budget and national planning, Zainab Ahmed, who briefed newsmen, stated that administration would continue to borrow funds for infrastructure projects. as the government does not get much from its revenue resources. Justifying the government’s position, Ahmed said, Nigeria’s revenue could barely accommodate services. Despite the concerns, its borrowings are still within acceptable limits, as the total money borrowed as at July 22 was 23 percent of the Gross Domestic Product.
The minister of finance and budget planning, Zainab Ahmed, disclosed that if we depend on the revenues we get, even though our revenue increased the operational expenditure of the government, including salaries and other overheads, it barely covered or swallowed up by the revenue. So, we need to borrow to build this project that will ensure development. She noted that we have a revenue problem, and that our revenue has been increasing. They reported to FEC that the revenues from non-oil have performed, as of July, at rate of 111 per., cent which means outperforming the prorated project. She said we should cut down our costs and increase revenue to cope with all that is required for the government to do, including salaries, payments, debts, service and capital expenditure.
Experts also spoke about ways to reduce the cost by saying the government should reduce the cost of governance. Government officials, including the Director-General of the Budget Office, Dr. Ben Akabueze, have insisted the problem is more of poor earnings than extravagant spending.
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