Phillips Nto, a former Commissioner for Finance and Economic Planning in Abia State, has described the state’s 2024 budget estimate as realistic, saying the components have the potential of activating businesses to boost the economy.
Contrary to the fears by some people that the projected borrowing in the budget would impoverish the state, Nto disagreed, arguing that since the lion share of the budget was allocated to capital expenditure, it would definitely stimulate the economy.
Alex Otti, governor of Abia State, recently presented a budget estimate of N567.2b with 84 percent for capital expenditure while 16 percent is for recurrent expenditure. The lower percentage allocated to recurrent expenditure would obviously reduce government spending on consumption and frivolity.
The government said it hoped to finance the deficit of N401 billion through borrowing both externally and locally.
But Nto noted that borrowing on its own was not a bad idea in so far as it was channelled to productive and not consumptive venture.