The Federal Government has allayed fears and concerns raised by the Central Bank of Nigeria (CBN), that the nation’s economy may relapse into another recession, citing the N2.5 trillion budget deficit recorded by the government in six months and other factors as major threats to a economic recovery.
CBN Governor, Godwin Emefiele, in his post-MPC address said: “The MPC was seriously worried over the increasing indebtedness of the Federal Government, which resulted into a N2.51 trillion deficit in the first half of 2017.
The Director-General of Budget Office, Mr Ben Akabueze, while reacting to the concerns, at the public consultative forum on the 2018 budget, in Lagos at the weekend, said: “There are a number of one-off revenue items in the budget that are yet to come in, they are significant items that haven’t come in and we are expecting them in the second half of the year. When they do, it will alter the deficit amount we will close the year with.”
Akabueze said on what the CBN referred to is a tentative figure that, “We are currently reconciling our figures and once done, we will have the actual figures.”
The Minister for Budget and National Planning, Senator Udo Udoma, in his address said: “We are working on every way to keep the over head down. Our deficit will go up from N2.3 trillion to N2.7 trillion in the 2018 proposition, which is within the limit of the Fiscal Responsibility Act. But we must watch it.
“We are exploring all options including making sure everyone meets its tax obligation. If we don’t meet our revenue estimate, we will look at adjusting some expenditure but I hope we don’t have to come to that.” (Daily Trust)
