President Muhammadu Buhari is proposing a budget of about N8 trillion for 2016.
This is according to a document from office of the Vice-President, Yemi Osinbajo seen by Reuters on Friday.
The budget is twice last year’s, which was N4.4 trillion. It is unknown how the federal government plans to fund the budget in an economy going downward due to the sharp fall in crude prices, as oil exports account for 70 percent of government revenue.
The document, used as the basis for a presentation by Osinbajo to the cabinet during a two-day retreat, proposed capital expenditure of N2trillion next year, up from N1.3trillion in 2015.
The document presented to them, bearing the title “The Economy – Where We Are Today”, laid out the extent to which the country has been hit by plunging oil prices, stating that in May foreign reserves hit a 10-year low of $29.6billion.
A page headed “How can we get out of a possible
recession?” outlined the need for a “massive
infrastructure building” programme for roads, rail and power, along with “expansionist” fiscal and monetary policies.
The presentation by Osinbajo, who heads the National Economic Council (NEC), stated that this would be paid for by a N25billion infrastructure fund and a N25billion “special intervention fund”.
Credit: daily post
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