Budget: Finance Ministers Defend Tinubu’s Borrowing Plan
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, and his counterpart in the Ministry of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, yesterday, defended the borrowing plan of the President Bola Ahmed Tinubu administration, as proposed in the 2024 appropriation bill.
The ministers, who spoke with journalists in Abuja shortly after the budget presentation to a joint session of the National Assembly by Tinubu, said the arrangement was the best way to go.
Their submissions were also supported by some opposition federal lawmakers, who described the budget as the solution to the country’s current economic challenges.
Edun said, “It is a good thing to borrow efficiently, sensibly and sustainably. What we need to look at is that borrowing is down and the deficit is also down. It’s just about three per cent of the GDP.
“That is a major move in the right direction to reduce dependence on borrowing and stabilise the economy.
“We are definitely going in the right direction as far as this budget is concerned. It will guarantee economic stability of government finances and the economy as a whole.”
Bagudu expressed confidence that the Tinubu administration would ensure adequate implementation of the 2024 budget.
He said, “I have no doubt that the 2024 budget proposal, once passed by the National Assembly and assented to by the president, will be implemented properly.
“The deficit of N9 trillion may sound high but if you compare it to that of last year, which is over N13 trillion, this is a significant milestone because it has absolutely lower deficit.”
Equally yesterday, Edun stated that the N27.5 trillion 2024 budget proposal was predicated on realistic assumptions and would be successfully implemented.
In his remarks at the public presentation of the 2024 budget proposals in Abuja, Edun said the budget parameters were based on empirical projections, explaining that more emphasis would be placed on expenditure management.
He noted the 2024 fiscal document was prepared to stabilise the economy, and ensure less reliance on borrowing. To underscore this, the minister explained that debt to Gross Domestic Product (GDP) had been slashed from 6.1 per cent in 2023 to 3.88 per cent in 2024.
He added that the key focus was to increase tax-to-GDP from under 10 per cent currently to about 18 per cent in the next few years.
The minister said the budget was intended to engender a stable macroeconomic environment, where local and foreign investors were expected to come in.
