Government has been urged to fast-track the implementation of specific growth-induced policies that would help to revamp the current sluggish economic trend, as well as spur business activities.
Besides, with the passage of the budget, there was need for effective implementation of the spending plan to boost purchasing power of the people and create employment opportunities.
SCM Capital Limited, which described the passage of the budget as a ‘welcome development’, however, bemoaned government’s usual weak fiscal execution culture.
“The government planned to borrow up to $5 billion from multiple sources, including the Eurobond market. It has also in recent months held exploratory discussions with the World Bank and also tried to secure funding from the African Development Bank and China’s export bank.
“It announced capital expenditure spending plan worth N350 billion ($1.7 billion) in the next quarter to stimulate economic growth. In our view, the passage of the budget is a positive development. We are however concern on the effectiveness of implementation of the spending plan. Our concern is based on the weak fiscal execution culture.
“However, we expect the government to fast track the release of specific growth induce policies to revamp the sluggish economy, create employment opportunities and boost purchasing power,” it added.
The Nigerian Senate had on Wednesday passed the 2016 Appropriation Bill.
President Muhammadu Buhari presented a total of N6.08trn budget, out of which N351bn was for statutory transfers, N2.8trn for recurrent expenditure and N1.8trn for capital expenditure.
However, a sum N1.587 trillion was approved by the Senate as the capital expenditure while N2.646.3 trillion was earmarked for recurrent expenditure of
The Senators also approved N351.37 billion as statutory transfers, N1.475.3 trillion for debt service, and N2.2 trillion for fiscal deficit.