CUPP Commends Early Submission Of 2021 Appropriation Bill, Identifies Loopholes
The Coalition of United Political Parties, CUPP says the early submission of the 2021 budget proposal, its prompt consideration and passage by the National Assembly will get the economy rolling and not go into recession.
This is contained in a statement signed by National Secretary Opposition Coalition CUPP Peter Ameh
It explains that submission of the budget proposal will give the National Assembly sufficient time to consider the budget and also give the ministries, department and agencies time to defend their budget proposals.
The CUPP states that the budget parameters and assumptions are realistic except the exchange rate of NGN379 to USD.
“The exchange rate is unrealistic due to differing exchange rate windows being operated by the Central Bank of Nigeria which distorts projections by the private sector which usually requires forex for their day to day operations.
The statement notes that the aspect of Gross Domestic Product which is GDP growth rate projected at 3% is a little ambitious in view of the impact of the COVID- 19 on the economy expected to be linger beyond next year.
It adds that the budget proposal for the fiscal year 2021 seems to have set the right priority with the bulk of capital spending going to ministry of work and housing, power and transportation for the first time in over 16 years.
The statement also explains that the capital allocation to education and health sectors are more than that of defense which is an indication of a departure from the stick approach to carrot approach.
It describes the idea of new borrowing of over N4 trillion to finance a deficit budget as worrisome stressing that allocating over three trillion to debt servicing alone, call for serious thought.
“The N13.08 trillion estimated budget is a huge amount of money to make impact but high cost of servicing debt which is above N3 trillion is very massive and may act as a drag on the economy”
According to the statement, Chief Ameh explained that all the budget assumptions look fairly realistic if monetary and the fiscal authorities will match their words with the real action by complementing and harmonizing each other with good policy framework to drive the economy forward.