The federal government has disclosed its plans to finance 2022 budget deficit through more borrowing of money which stands at 6.258 trillion naira.
This comes at the heels of outcry against recurrent borrowing which it has engaged in of late.
It also follows the Federal Executive Council (FEC’s) approval of the 2022 Appropriation Bill for an aggregate expenditure of N16.39 trillion.
Tribune reveals that the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, who disclosed the council’s approval at Wednesday’s meeting presided over by President Muhammadu Buhari, maintained that government would continue to borrow to fund infrastructure projects as it does not get enough from its revenues.
The report said Ahmed noted that Nigeria’s revenues could barely accommodate services even as she emphasized that despite the concerns, its borrowings are still acceptable limits.
She said: “If we just depend on the revenues that we get, even though our revenues have increased, the operational expenditure of government, including salaries and other overheads, is barely covered or swallowed up by the revenue.
“So, we need to borrow to be able to build these projects that will ensure that we’re able to develop on a sustainable basis.
“Nigeria’s boring, has been of great concern and has elicited a lot of discussions. But if you look at the total size of the borrowing, it is still within healthy and sustainable limits. As at July 2021, the total borrowing is 23% of GDP.”
