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Minister Explains FG’s Position on Borrowing for 2024 Budget

The Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun, provided insights into the government’s cautious approach to borrowing for the 2024 Budget. Edun stressed the need to prioritize revenue generation and reduce the current high deficit financing.

Appearing before the joint Senate Committee on Finance, Appropriations, National Planning, Local and Foreign Debt, Edun, accompanied by key officials, proposed a strategy focusing on spending more on revenue-generating infrastructure. He cited the challenges of accessing foreign loans due to prevailing high interest rates, discouraging the reliance on borrowing.

Edun highlighted the global trend of rich countries aiming to bring down inflation rates to stabilize their economies. He emphasized the government’s commitment to spend on infrastructure that could contribute to revenue generation, pointing out the lower percentage of government spending compared to GDP in Nigeria.

Senator Sani Musa, expressing reservations about revenue projections, underscored the importance of addressing leakages and misappropriation of funds by revenue-generating agencies. He emphasized the need for detailed information on the Customs modernization project and plans to collect excise duties and tariffs to avoid a deficit budget in the coming year.

In conclusion, Edun’s presentation outlined the government’s rationale for minimizing reliance on borrowing, focusing on revenue generation, and prudent spending on infrastructure to drive economic growth. The Senate committee emphasized the need for accountability and effective revenue collection mechanisms.

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