BudgIT Lauds Early Budget Presentation, Cautions against Unrealistic Revenue Projections

BudgIT welcomes the relatively early presentation of the 2018 Budget and accepts that the economy requires significant fiscal injections to sustain and accelerate economic growth. Significant investment in Infrastructure, education, agriculture among others are also important if Nigeria’s hope to diversify government revenue and export base is to be sustained, it stated.

According to it, “the improvement in tax administration which the government hope to push ahead within 2018 as highlighted in Mr President’s budget presentation speech is also welcome. Equally important is the need to end the cycle of poverty through some form of social intervention.

“In all, the 2018 proposed budget of N8.6tn and its guiding framework captures a majority of the objectives and philosophy which scholars, researchers and economist are inclined to think about when the need for fiscal injections arises. The philosophy of the current government to spend big due to the relatively slow economic activities is welcome and clearly understood.

“As such, the capital expenditure allocation of N2.42tn is huge in nominal terms when compared to previous budgets. Given that almost all capital expenditure allocation will be financed primarily by debts, we hope that the line items in the budget will reflect such.

“Nigeria cannot continue to borrow to buy cars, computers, retrofit office buildings to the detriment of the critical mass needed to end the cycle of poverty and improve the economy. We hope the biggest proportion of capital allocation will go into improving infrastructure, expanding access to education, health among others.