2023 budget: Govt should use debt to service capital expenditure — ANAN CEO

By Matthew Denis, Abuja

Divergent views have  continued to trail the 2023 budget presentation by President Muhammadu Buhari at the National Assembly.

Speaking to Nigerian NewsDirect, the Chief Executive Officer, Association of National Accountants of Nigeria (ANAN), Dr. Kayode Olushola,  said, “I feel the budget is comprehensive enough. However, it’s just an estimate for 2023, worthy of note is that we are having a larger projection to cater for Nigerians in 2023 as N20.51trn is about the largest in Nigeria’s history.

“Don’t also forget that budget is about the people. The Capital expenditure is lower than recurrent expenditure; ideally it should have been the other way round for development purpose. This is because our recurrent expenditure profile is too extravagant. We have always known that we need more fiscal discipline.

“Also of note is the fact that the debt servicing is higher than the capital expenditure; this shows the alarming rate of our borrowing. However, government and relevant authorities must ensure that these debts are judiciously used for capital projects for the good of Nigerians and not recurrent issues. We also need to slow down on debts so that it’s servicing will not be this burdensome on Nigerians.

“I am impressed that this government returned the fiscal year back to what it should be according to our constitution of January to December. Recall that our budget cycle before now had always violated that provision until this administration came into power some years back and has been consistent with it.”

Dr. Fasua stressed that it was the implementation that will determine the impact of the budget on Nigerians.

He posited, “We look forward to effective implementation after the legislature have done their work on the appropriation bill and President signs it into law.”

Recall that President Buhari had last week Friday presented N20.51trillion as the 2023 budget proposal to the National Assembly.