Changes in 2024 Appropriation Parameters Affecting Budget Performance, Says NES President
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The President of the Nigerian Economic Society (NEC), Prof. Adeola Adenikinju, has said changes in the parametres which the 2024 national budget was predicated was already affecting the performances of the fiscal document, two months after it was signed into law.
Adenikinju stated this yesterday, at a workshop jointly organised by the NES in collaboration with the National Institute For Legislative And Democratic Studies in Abuja.
The one-day seminar was titled, "the implementation of the 2024 Appropriation Act of the Federal Government of Nigeria."
He said participants and the resource persons at the workshop were expected to provide practical and professional advice that would enable the federal government manage the situation to the advantage of Nigerians.
The Professor of Economics said, "As we all know, two months down the line, nearly all these parameters have changed significantly.
"These changes are likely to impacts on the actual revenues and expenditures of government, with likely effects on the capacity to implement the 2024 budget as passed.
"In addition, given the role public expenditure play in the production function of the private sector in Nigeria, significant divergence of the actual budget from the proposed budget would impact on the performance of the overall economy.
"What should the government do because of the unfolding developments? Is it too early for the government to worry about the implementation of the budget?
"What are the lessons of experience for future budgetary process? We must also note that some of the parameters have dual effects on the budget - positive and negative effects.
"Take for example the depreciation in the value of the naira. This has brought significant revenue flow to the cover of the government.
"However, it has also led to significant rise in inflation rate, making government expenditures – debt and non-debt costlier.
"It has also led to pressures for increased wages and salaries by government workers and retirees.”
The economist noted that the 2024 budget was predicated on a total expenditure of N28.78 trillion and had a projected revenue of N19.7 trillion, implying a budget deficit of N10 trillion.
Other key parameters of the budget he said were: non-debt expenditure N8.76 trillion, debt service expenditure N8.2 trillion and capital expenditure N9.99 trillion
More importantly, he said, the budget was predicated on a number of assumptions about key parameters including oil price per barrel ($77.96); Oil production per day (1.78 million barrels per day); GDP growth rate (3.88%); Inflation rate (21.4%) and Exchange rate (N800/$)