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Isaac Anumihe, Abuja
The Federal Government has blamed the National Assembly (NASS) for creating an unfunded deficit of N102.83 billion in the 2019 Budget, thereby giving indications that the budget might be difficult to implement.
The former Minister of Budget and National Planning, Senator Udoma Udo Udoma, who expressed this concern in Abuja, said that not only did the NASS increase the budget size from N8.83 trillion to N8.92 trillion (an increase of N90.33 billion), it also made unexplained increases in the budget totalling N31.5 billion on some non-oil revenue lines.
This, he said, has widened the borrowing gap.
“This has resulted in an overall increase of N58.83 billion in deficit. Inexplicably, NASS reduced the proposed borrowing from N1.649 trillion to N1.605 trillion, thus creating an overall unfunded deficit of N102.83 billion. To fully fund the budget, the level of borrowing may therefore have to increase” he said..
Allocations for some executive projects based on critical appraisal and linked to the Economic Recovery and Growth Plan (ERGP) were reduced and a large number of new projects, mainly constituency type projects, were introduced.
According to him, crude oil prices declined early in the year from an average of $71.3 per barrel in 2018 to $60.5 per barrel in January 2019 and prices have risen steadily recently to about $69 per barrel currently for Nigeria.
“The consecutive rise is explained by continuing strengthening oil market fundamentals, improved market sentiment, and commitments to restore global oil market stability.
“The World Bank projects crude oil prices to moderate slightly from their current levels and average $66 per barrel in 2019”, he said.
As employment growth usually takes some time to recover after recession, he said, National Bureau of Statistics (NBS) data show that unemployment and underemployment remain high in Nigeria.
“However, we can expect reduction in the rate of unemployment, as we continue to implement the policies and programmes of the ERGP which are directed at creating more diversified and inclusive growth.
“Mr President has indicated that the focus of his second term would be employment generation.
“Relative peace and stability have been attained in the fight against insurgency in parts of the North-East, with economic activities recovering. Government is taking steps to address issues of rising insecurity in other parts of the country,” he said.
