FG signals additional borrowing following N90bn budget raise by NASS

The Federal Government has already signalled it would raise its borrowing to enable it implement the N8.92 trillion, 2019 budget signed by President Buhari on Monday.

The lawmakers raised the N8.83 trillion total spending proposed by the executive by N90.33 billion to N8.92 trillion but cut down proposed borrowing from N1.649 trillion to N1.605 trillion, thus creating an overall unfunded deficit of N102 billion.

President Buhari, while signing the appropriation bill had expressed reservations that the budget would be difficult to implement and would be engaging the incoming National Assembly, NASS, on how to fund the budget that the government had tagged “budget of continuity”.

Minister of Budget and National Planning, Udoma Udo Udoma, speaking at the public presentation of the budget on Tuesday, signalled the possible raise in borrowing so that government can deliver its on electoral promises.

“Executive revenue assumptions were generally approved and adopted by NASS, except for unexplained increases totalling N31.5bn on some non-oil revenue lines,” he said.

Udoma confirmed the president’s concerns that the law makers, particularly reduced allocations for some executive projects which were based on critical appraisals and linked to the Economic Recovery and Growth Plan ((ERGP), and introduced a large number of new projects, mainly the constituency projects handled solely by the law makers themselves.

“Mr President intends to engage the leadership of the ninth National Assembly as soon as it emerges, to effect any amendments necessary to ensure he delivers on the election promises,” said Udoma who is billed to exit as the planning minister on Tuesday except if reappointed by the president.

“Mr President also intends to seek the support of the leadership of the NASS for a smoother, faster budget process going forward and their collaboration to return to a January – December fiscal year,” he added.

…details soon