Abaribe: budget for 2021 is unrealistic

Posted by on Oct 14, 2020, Under: News

Abaribe: budget for 2021 is unrealistic

Senate minority leader Enyinnaya Abaribe says the $ 13.08 billion budget for 2021 presented to the joint National Assembly by President Muhammadu Bukhari is unrealistic.

Speaking on Tuesday during a debate on the budget estimates for 2021, Abaribe criticized the assumptions on which the appropriation bill was based.

Budget based on 379 AD base exchange rate. per dollar and crude oil production of 1.86 million barrels per day (including 400,000 barrels of condensate) at a price of $ 40 per barrel.

Capital expenditures in the budget are estimated at N2.083 trillion, which is 29 percent of the total budget. It aims at 3% GDP growth and 11.95% inflation.

However, the minority leader said the budget was “nothing more than old news.”

“This budget is nothing but the same. We have a budget based on unrealistic expectations. We are not even sure what the oil situation will be like, ”he said.

“If the budget is based on assumptions, I agree, but because you are hiring the wrong way. I want to go on and say that this does not reflect an understanding of the fundamental issues of today.

“This budget is nothing more than old news. Every time the same old news, nothing new. “

For his part, George Sekibo, Senator representing the Northeast Rivers, inquired why the funds allocated for capital projects are below the deficit.

“The budget of 13.08 trillion has a deficit of 5.20 trillion. How can a capital project be less than a deficit? I hope that when we have the money, it will be used correctly, ”he said.

Ike Equeremado, Senator representing Enugu West, expressed concern that the projected debt-to-GDP ratio is higher than three percent.

“For the first time, the ratio of debt to GDP exceeds 3%. I want the Finance and Appropriations Committee to find a solution to this problem, ”he said.

“I was very concerned about how we deal with loans. I’m worried about the loan from China. They will not allow you to pay off any debts, because all the money goes to specific projects, and if they are not completed, they take responsibility, ”he said.

The budget debate was updated on Wednesday.

Source: – Cable