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By Victor Ahiuma-Young
A t the backdrop of steady positive numbers reported on Nigeria's macroeconomic indicators over the past year, l & # 39; Nigeria's Employers' Consultative Association, NECA, reported that their findings reveal continuing adversity for individuals and businesses in the country.
They attributed the situation to the misalignment of the federal government's fiscal policy, where the bulk of its resources that would have been injected to stimulate economic activities were spent on debt service, deploring that $ 18.1 trillion Total national budget have been used to repay the debt over the last three years.
The Association added that the trend has negative consequences on the development of the nation. spent on recurrent and capital expenditures. They also deplored the negative impact of delays in the budget process on the economy over the past three years.
The National Bureau of Statistics, NBS, reported a steady growth in gross domestic product, GDP, figures since 2017 after the end of Nigeria
But at its 61st annual general meeting, the # 39; AGA yesterday, NECA President, Mr. Larry Ettah, while acknowledging the slight economic growth in 2017, said: "The economy continued to be pursued by the bad habit of delay in the past year. Budget adoption The serious implication of this is the loss of momentum and momentum to consolidate on the gains of the previous year. projected GDP growth rate for 2018 already revised downwards
"A cursory review of the 2018 budget shows that recurrent government spending as a percentage of total federal government spending is at a staggering level. percentage, an increase from 68.27% in 2017. We do not believe this spending model is sound; a clear indication that the government still needs to give the issue of infrastructure improvement the importance it deserves through adequate tax support. "The recently adopted national budget has shown that debt service (including the amortization fund) is the third (N2.2 billion) largest component of the 2018 spending framework, accounting for 24.17 percent or about a quarter of the total budget (N9.19 trillion) .The cost of servicing the debt, which amounts to N2.2 billion, represents about 30.76% of the total revenue forecast (7.1 NZ billions), indicating that debt service may soon return to the pre-debt period.
Association
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