2016 Budget: Experts advise on implementation

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Kemi Adeosun, Minister of Finance

Kemi Adeosun, Minister of Finance

Following the signing of the 2016 budget into law by President Muhammadu Buhari on Friday, some economic experts have advised the federal government to hit the ground running in the implementation of the capital component of the budget to reflate the economy.

They urged the Federal Government to focus on full implementation of the capital component of the 2016 appropriation Act.

The experts were of the opinion that given the economic crunch in the country, it was important to embark on projects targeted at reviving the economy.

The signing of the N6.6 trillion budget came as a relief to many Nigerians following series of controversies that surrounded its passing by the National Assembly.

Dr. Uche Uwaleke, Head of Department of Banking and Finance Nasarawa State University, said government should hit the ground running by releasing the promised N350 billion fund meant for the payment of contractors.

He said that the fund would enable the contractors to pay some of their staff that had been laid off, and help in stimulating economic activities in the country.

He said that the implementation of the capital component of the budget would help counter the inflationary rate of 12.6 percent in the country.

Uwaleke said inflation rate had led to a high cost of doing business in the country, which resulted in the laying off of workers by many companies.

“We need a counter tool to reduce inflation and the counter tool is fiscal policies of Central Bank of Nigeria (CBN) and government expenditure, the government needs to spend money in the economy.

“ Government needs to spend money in the right direction and that right direction is infrastructure and capital projects.“

He said that the injection of fund into capital projects would lead to job creation, noting that unemployment was on the high side in the country.

Uwaleke also …Read More

Source:: PM Newspaper