Senate moves to curb borrowing by FG to finance budget

The Senate on Tuesday indicated that it will develop a strategy of engagement with revenue generating agencies on how to make them achieve their targets and generate more revenues in 2022 to narrow the margins of borrowing by Government

This was coming against the backdrop of incessant resort to borrowing to finance National Budget that has almost become a reoccurring decimal in recent times under the President Muhammadu Buhari administration,
The president of the Senate Ahmed Lawan spoke at the floor of the Senate in his address at resumption of the upper legislative chamber after their Yuletide/ New year break
Lawan said they will ensure that the revenue generating drive of the agencies are boosted with a view to reducing borrowing for development of the much needed infrastructure.
“This is a major challenge for our development and we need to treat as such.”

“Distinguished Colleagues, as we all know the oversight of the implementation of the Budget is a critical function of the National Assembly.
“We must therefore strategize on effective oversight of the implementation of the 2022 Budget. This is going to be the last budget that would be fully implemented for 12 months in the life of the Ninth Senate. We therefore, need to supervise very closely.

“Distinguished Colleagues, funding of the 2022 Budget is predicated on significant borrowing. Our country is caught between the devil and the deep blue sea.
“We have to construct and provide infrastructure, in all parts of our country because infrastructure is needed for our nation to develop.
“However, we do not generate enough revenues to fund the provision of such infrastructure. Until more revenues are generated, the country has to borrow and also resort to other sources of funding our infrastructural development.
“But we cannot continue to borrow endlessly. It is imperative that we need to improve on the revenue to Gross Domestic Product (GDP) ratio. At about 8% Revenue to GDP ratio, our country is basically at 50% of what is required of the revenue to GDP of 15% for it to support any significant economic development.”