The 2021 Budget Proposal Contravenes The Fiscal Responsibility Act.
 
Looking at the 2021 Budget Proposal placed before the National Assembly by President Muhammadu Buhari on Thursday, October 8, 2020, a number of issues, very grave and perhaps disturbing issues arise.

This is contrary to the Fiscal Responsibility Act of 2007, which provides in Part II, Section 12, subsection 1 that:
"Aggregate Expenditure and the Aggregate amount appropriated by the National Assembly for each financial year shall not be more than the estimated aggregate revenue plus a deficit,
not exceeding three per cent of the estimated Gross Domestic Product or any sustainable percentage as may be determined by the National Assembly for each financial year.”

Nigeria had a GDP of approximately $447 billion in 2019. Three percent (3%) of this amount is $13. 3 billion, which at the current official exchange rate of ₦379 to $1, gives you a figure of ₦5.07 trillion.

So clearly, the budget deficit of ₦5.21 trillion, as announced by President Muhammadu, is above 3% of our GDP and is therefore in contravention of the Fiscal Responsibility Act of 2007.
Even more disturbing is the fact that our GDP has fallen sharply from its 2019 figures, and has been projected by the World Bank and other multilateral institutions at somewhere between $400 billion and $350 billion.

Meaning that in actual sense, the ₦5.21Trillion budget deficit is actually far above the 3% threshold stipulated by the FRA.

That this escaped the notice of the Buhari administration shows a glaring lack of rigour in the formulation of the Budget. A very disturbing development


However, if this is done, they will be serving this administration’s interests, not Nigeria’s, because the Act says that such a threshold must be sustainable. Is it sustainable when our budget makes almost as much provision for debt servicing, as it does for capital expenditure?

As such, I call on the President, to recall this budget, and recalibrate it to reflect the provisions of the Fiscal Responsibility Act of 2007, and the current economic realities of the nation.

To do otherwise will not only be unpatriotic, it will also be catastrophic for our nation’s economy.

https://twitter.com/atiku/status/1314837333775183873

This desperado don come with him voodoo economics and analysis again to hoodwink the gullible youths.

Make we pull out all the budgets from 2008 up until 2019 to see what he said about them then and how they met the FRA act.

Once election don dey near na so dem go dey behave like better people.

I agree that the budget is shiity but refuse to be hoodwinked by Atiku's analysis.

daddytime:
This desperado don come with him voodoo economics and analysis again to hoodwink the gullible youths.

Read the analysis first before concluding.

Atikulated

Now he's responsive, when he gets there we'll get silence... Just like Buhari and osibanjo

When a quota system minister of finance and accountant general rules, confusion is the answer

daddytime:
This desperado don come with him voodoo economics and analysis again to hoodwink the gullible youths.

Make we pull out all the budgets from 2008 up until 2019 to see what he said about them then and how the met the FRA act.

Once election don dey near na so dem go dey behave like better people.

I agree that the budget is shiity but refuse to be hoodwinked by Atiku's analysis.

Because you don't understand it. Don't be forming woke. Ask for better understanding.

Anyone could have been better than Buhari.

Buhari is the worst.

I can vote Tinubu or El-rufai but never Buhari.

Its only hate that will make you not see that Buhari is incapacitated.

A shame back to back.

Well Atiku, the looter from the sister party of APC called PDP, we have heard you.

You are now seeing what we saw in 2015

You ain't wise after all.

Agbegbaorogboye:


Because you don't understand it. Don't be forming woke. Ask for better understanding.

You are right.

sapientia:
Anyone could have been better than Buhari.

Buhari is the worst.

I can vote Tinubu or El-rufai but never Buhari.

Its only hate that will make you not see that Buhari is incapacitated.

A shame back to back.

Well Atiku, the looter from the sister party of APC called PDP, we have heard you.

You are now seeing what we saw in 2015

You ain't wise after all.

Time of oldmen has passed, they have ALL missused their opportunity, Youth is the next stage...

Omooba77:


Time of oldmen has passed, they have ALL missused their opportunity, Youth is the next stage...

You are absolutely right.

Old men have killed this country.

And Buhari have been the worst of them

Caused by the clown from Otueke who supervised controlled looting.

Same people are in APC now having a field day with looting.

sapientia:

You are absolutely right.
Old men have killed this country.
And Buhari have been the worst of them
Caused by the clown from Otueke who supervised controlled looting.
Same people are in APC now having a field day with looting.

You don try two husbands....