Reprieve may be coming the way of the Federal Government as the National Assembly makes a u-turn to passing the revised N10.8 trillion 2020 budget proposal on time.
But uncertainty has continued to trail the budget by analysts, who fear that it’s objectives may be shadowed by the dwindling nation’s revenue from oil, the main foreign exchange earner.
In fact some analysts fear that the disproportionate relationship between revenue and burgeoning expenditure could mean larger chunk of it going for recurrent expenditure at the expense of capital expenditure which is a catalyst for development
Johnson Chukwu, chief executive of Cowry Asset Management limited says the larger proportion going for debt servicing and deficit financing would mean disaster for the economy.
However, Ben Akabueze, director General, budget office did not share the pessimism, adding however that the only viable option for the federal government following crash of oil prices at the international market is external borrowing so as to avoid retrenchment of civil servants and as well be focused on meeting some critical infrastructure spending.
Both personalities spoke on Channels television, Politics today, on Wednesday night.
Another analyst, who pleaded for anonymity says the only way out is for governments at all levels to reduce cost of governance, without which the objectives of growth, improved living standard, among others will be achieved.
However, while the House of Representatives on Wednesday passed the budget based on oil prices at $28 per barrel, the Senate will on Thursday, 11th June, 2020, consider the revised document.
Ahmad Lawan, President of the Senate, gave the hint on Wednesday during plenary after the Committee on Appropriation laid the report on the 2020 revised document.
The budget is N300 billion above the budget submitted by President Muhammadu Buhari late last month, and increases the expected oil price by $3 per barrel.
The government had planned to cut its record 2020 budget due to the coronavirus pandemic and an oil price plunge, but the version passed by the House is above the 10.59 trillion naira level approved by Buhari in December.
The Senate will however, on Thursday, 11th June, 2020, consider the revised 2020 budget.The President of the Senate, Ahmad Lawan, gave the hint on Wednesday during plenary after the Committee on Appropriation laid the report on the 2020 revised budget. “Tomorrow, we can receive and consider the report to ensure that we don’t delay anything as important as that. So, this is the essence of altering the order paper,” Lawan said. Recall that Senate on Tuesday deferred presentation of the report over a delay by the Minister of Finance, Budget and National Planning, Zainab Ahmed, to provide details for the sum of N186 billion, an amount which is part of the N500 billion COVID-19 intervention fund.
However, Lawan, on Wednesday disclosed that the Ministry of Finance, Budget and National Planning had complied with the request of the Appropriations Committee by providing the relevant details for the outstanding N186 billion.The development, according to him, makes it expedient for the upper chamber to consider the revised 2020 budget on Thursday during plenary. The Senate is expected to approve the over $5m loan sought for approval by President Buhari, for which House of representatives has already approved alongside the budget.