Saturday, October 12, 2019
Advertisement

Abaribe says 2020 budget is not sustainable

Abaribe says 2020 budget is not sustainable
October 09
15:19 2019
Advertisement

Enyinnaya Abaribe, minority leader of the senate, says the 2020 budget proposal is not sustainable.

Abaribe said this on Wednesday at the commencement of a debate on the general principles of the 2020 budget.

On Tuesday, President Muhammadu Buhari presented a N10.33 trillion budget proposal to a joint session of the national assembly.

But speaking on the floor of the upper legislative chamber, the minority leader noted debt servicing is higher than capital expenditure.

He said although, the senators have promised to work with the executive, they should also look at the facts of the budget.

“Two assumptions are critical for this government. First, the assumption on oil prices. I know that our people were happy when there seem to be a little problem in the middle east with Iran which will lead to a spike in the oil price but that seem to have gone down which means that our projection for the cost of oil may also be off the mark,” Abaribe said.

“Second one is our projection for the production levels daily. Last year, the average production level was 1.8m bpd. Why don’t we just keep it there? Why must we go up to 2.1 only to be disappointed at the end of the day.

“I know that you have promised the executive that we are going to work very well with the executive to produce the budget but I plead with my colleagues to look at the facts. You can’t run away from facts.

“The facts say this is not a sustainable budget.”

According to him, the proposed estimates is a budget of taxation.

“Very many things were put and jumbled together – budget of fiscal consolidation, investing in critical infrastructure and so forth. In other words, putting everything together like that reminds us of what Shakespeare said ‘a tale full of sound and fury signifies nothing’,” he said.

“I want to suggest a name to those who wrote this speech for the president that this is nothing but a budget of taxation.

“This is a budget that is based on taxation. Its is based on 7.5 percent increase in VAT, based on several other increases. Debt servicing as a component is higher than capital expenditure. Two trillion naria for capital expenditure, N2.4 trillion for debt servicing.

“The projected growth that they put in the budget was 1.9 percent, less than the population growth of 2.6 percent. So, if we look at it globally, we are still struggling.”

RECEIVE ALERTS FROM THECABLE

WHATSAPP 08113975334
TWITTER @thecableng
Copyright 2019 TheCable. All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from TheCable.
Tags
Advertisement

Social Comments

2 Comments

  1. Baron
    Baron October 09, 15:40

    Thank you sir for your contribution. APC over to you. Please explain in more detail your abracadabra budget!

    Reply to this comment
  2. Dayo
    Dayo October 12, 01:23

    Abaribe is speaking in confusion. Debt servicing means you’re owning, don’t you want to pay. How do Budgeting on production growth became a sin how do you plan and remained on last year production target why is introducing stagnancy in to the new Nigeria working towards next level. Capital project is the dividend of democracy. If he consider it small. Let him proposed a better option. Let the critics be More objective than just barking like dog.

    Reply to this comment

Write a Comment

Your email address will not be published.
Required fields are marked *

*

Advertisement
Advertisement

Exchange Rates

NOTE: The black market rates represent the most prevalent. They could be slightly higher or lower among different sellers.
October 11, 2019USDGBPEUR
INTERBANK306397354
LAGOS362475413
KANO361474413
PH361475412
ABUJA362476413
Advertisement
Advertisement
Advertisement