President Muhammadu Buhari has written to the House of Representatives, requesting to borrow an additional N965.42 billion from the domestic debt market to cover for a wider budget deficit in 2022.
Buhari in a letter read by Femi Gbajabiamila, Speaker of the House at resumed plenary on Thursday said, the revision becomes necessary, as the 2022 budget deficit is projected to increase to N7.35 trillion representing 3.99 percent of the Gross Domestic Product (GDP).
The President said in the letter that the increment in the budget deficit will be financed by new borrowings from the domestic market.
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The letter which according to Gbajabiamila is lengthy read in parts:
“As you are aware Mr Speaker, the new development both in the global economy as well as the domestic economy have necessitated the revision of the 2022 fiscal framework on which the 2022 budget was based.
“The total budget deficit is projected to increase by N965.42 billion to N7.35 trillion representing 3.99 percent of the GDP. The increment in the deficit will be financed by new borrowings from the domestic market.
“Given the urgency of the request for revision of the 2022 fiscal framework and 2022 budget amendment, I seek the corporation of the National Assembly for expeditious action on this request.”
The Speaker after reading the letter referred it to the House Committee on Finance for further legislative action.
