Federal Government is to make further borrowings to finance the 6.258 trillion Naira deficit in the proposed 2022 Budget.
Minister of Budget and National Planning, Hajia Zainab Ahmed, disclosed this to newsmen after the Federal Executive Council, FEC, approved the 2022 Appropriation Bill for an aggregate expenditure of 16.39 trillion Naira.
She explained that government would continue to borrow to fund infrastructure projects since the revenue accruing to it could not adequately fund the projects.
The Minister observed that the country’s revenues could barely accommodate services, emphasising however that despite the concerns, its borrowings were still at acceptable limits, arguing that as at July 2021, the total borrowing was 23 percent of the Gross Domestic Product.
Reacting to critics of the borrowing, Hajia Zainab Ahmed noted that there had been borrowings before this administration, explained that the projects being executed with such funds would fetch back those borrowings.
She said despite the concern being shown about the borrowing, Nigeria was the lowest within the region, if compared to Egypt, South Africa, Brazil, Mexico, and Angola.
The Minister maintained that Nigeria’s expenditure, especially staff emoluments had been increasing at a very fast rate, making it difficult to cope with funding of government, hence the decision to cut down cost, and increase revenue to cope up.
Reporting by Abdullah Bello: Edited by Adeniyi Bakare