The Presidential candidate of the Alliance for United Nigeria, AUN, Angela Johnson, has urged the Senate and House of Representatives to scrutinize the 2020 budget estimates presented by President Muhammadu Buhari before passage in view of what she sees as seemingly weak prospects in tackling the country’s endangered economy.
She expressed this reservation through a press statement issued by her media office on Thursday. She lamented a recurrent component of N4.88 trillion and debt service of N2.45trillion in the N10.3trillion estimate, with nothing left for the much needed infrastructure development.
She emphasized that the N2.14trillion proposed as capital expenditure is insufficient to stimulate the economy along a trajectory that could guarantee growth. Among other things, Angela Johnson sees the borrowing plans as worrisome as a result of the growing debt profile which rose by additional N3,3 trillion in 12 months peaking at N25.7trillion as at the end of June 2019.
“A proposed N2.46 trillion to service existing foreign loans and N2.14 trillion for capital budget does not stand the basic logic in elementary economics” She stated.
She added that debt service commitment and recurrent spending are beginning to crowd out capital expenditure, saying this development does not only negate the aspiration to lift 100 million Nigerians from poverty but a despairing move in building infrastructure and competitive economy. She emphasized that given the revenue challenges confronting the country, it will take divine intervention for 50 percent implementation, a development that will perpetually keep Nigeria low.
She stated that for a government that is reputed for ineptitude and unforgiveable history of low releases of budgeted funds, the low revenue to Gross Domestic Product can affect the implementation of the budget if passed as presented.
While
the minimum wage is yet to be implemented, she maintained that the introduction
of 2.5 per cent increase in Value Added Tax, VAT, is not only inhuman but an
assault on Nigerians who are struggling to afford three square meals a day.
“This is where Alliance for United Nigerian is
different. AUN has conscience and will not further impoverish Nigerians through
unrealistic budget estimates. The country’s earnings are declining. The
exchange rate assumption of N305 to the dollar is unrealistic. Why should a
government be so deceitful? She asked.
She therefore urges the NASS to examining critically those aspects and alters appropriately where necessary for an all inclusive growth in the 2020 fiscal year.
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