The signing of the 2023 Budget and the 2022 Budget by President Muhammadu Buhari has added about 12 Trillion Naira to the Budget deficit which will in turn raise public debt.
Tax and Fiscal Policy Expert, Taiwo Oyedele, disclosed this while speaking on the impact of borrowing by the Federal Government on the nations’ Economy.
Mr Oyedele who was speaking with Tolulope Ogunjobi on the TVC News Business Nigeria programme said the signing of the 21.83 Trillion Naira has ensured that the nation will find it a bit more challenging to get things done in 2023 with the rising deficit.
Mr Oyedele who frowned at the decision by the members of the National Assembly to add almost a Trillion Naira to the 2023 Budget as presented by President Muhammadu Buhari described the Step as unhealthy and Counter productive.
He said the Legislative arm should be as mindful of the current situation the nation faces since they have access to more information than most Nigerians.
He disclosed that the current challenges facing the nation needs to be properly managed especially in the preparation of the Budget.
He disclosed that for things to get better going forward especially in 2023, the nations Revenue must undergo a major Transformational Development.
He said failure to do this will lead to more Economic Challenges for the nation with the current trend of debt repayment especially a major challenge that Policy makers are still dealing with.
He disclosed that the nation may spend much more of its Revenue to fund debt repayment with the 2023 Budget already highly deficit based.
On the Oil Price and Production benchmark for 2023, Mr Oyedele described the move as a complete waste of time which has ensured that members of the National Assembly are able to play around with projects and Budgetting in a way that shows they do not understand the way things run.
Going Further, He said the Federal Government needs to show the required Political will to be able to reach the 1.69 Million Barrels of Crude per day by tackling the menace of Crude Theft headlong.
He described the target as achievable with the necessary Political will which must move beyond rhetoric and pushing needless Political Narratives.
On the expected recession in one third part of the World according to the IMF, Mr Oyedele said the Other two thirds of the World will also experience something close to recession.
