From Rotimi Asher, Lagos
Some financial experts have urged the Federal Government to entrench fiscal discipline and adopt more innovative approaches to managing the budget deficit.
They also advised that the flamboyant lifestyle of the political class should be curbed to reduce the pressure for additional borrowing.
Prof. Ndubisi Nwokoma of the Department of Economics, Caleb University, said in Lagos, that adherence to fiscal discipline was one of the key solutions to reducing the need for loans.
“Government should not incur expenditures far above its projected revenue for the year.
“Such practices create room for excessive borrowing, which must be serviced with scarce resources and ultimately crowds out businesses from accessing funds locally”, Nwokoma said.
He said: “Since the budget will only take effect next year, government earnings from tax reforms could be channelled towards its implementation.
“Then the need to borrow more will not be as pressing, allowing government to focus on other critical needs of society”, he added.
Also, Mr Okechukwu Unegbu, former President of the Chartered Institute of Bankers of Nigeria, called for more innovative methods of executing the budget.
“The government should adopt equity financing in implementing the capital component of the budget rather than borrowing.
“As our government is not harnessing the immense prospects that the private sector could play in fixing especially the infrastructural need of the people”, Unegbu said.
He emphasised that the government should concession some state assets to effectively fund the budget.
“We have over 89 state assets across the country that are still quite productive.
“The government should partner with the private sector to revive them and generate revenue in the process”, Unegbu said.
Mr Chris Nemedia, former Director at the Central Bank of Nigeria ,CBN, also argued that the government must reduce the cost of governance to adequately execute the budget.
“The ostentatious lifestyle of the political class does not resonate with our current economic realities.
“Reducing such excesses will help cut the cost of governance and free up funds for developmental projects”, Nemedia said.
NAN recalls that President Bola Tinubu has sought the approval of the National Assembly for a fresh N1.15 trillion borrowing from the domestic debt market to help finance the deficit in the 2025 budget.
The President’s request was contained in a letter read on the floor of the Senate during plenary.
The letter noted that the proposed borrowing is meant to bridge the funding gap and ensure full implementation of government programmes and projects under the 2025 fiscal plan
