NAN-HE-2
Budget
By Chinyere Joel-Nwokeoma
Lagos, June 13, 2017 (NAN) Some financial experts on Tuesday in Lagos urged the Federal Government to ensure effective implementation of the capital expenditure component of the 2017 budget to strengthen economic recovery.
They told the News Agency of Nigeria (NAN) that effective implementation of the capital component of the just signed 2017 budget would help in consolidating economic gains recorded so far.
Dr Uche Uwaleke, Head of Banking and Finance Department, Nasarawa State University, Keffi, told NAN that if adequately implemented, the budget would bring succour to all sectors of the economy.
Uwaleke said the economy had shown signs of recovery on the back of improved liquidity in the Foreign Exchange Market and the apparent return of business confidence in the last couple of weeks.
“The signing of the 2017 budget formally kick starts the implementation stage.
“To consolidate the gains recorded thus far, a great deal of attention should be paid to the capital component of the budget, which is what will drive growth,’’ Uwaleke said.
He predicted that a sustained rally in the stock market and an increased tempo in the overall economic activities had signaled a death knell to the economic recession.
Prof. Sheriffdeen Tella of the Economics Department, Olabisi Onabanjo University, Ago-Iwoye, Ogun, described the budget signing as belated.
Tella said the late signing was not the fault of the Presidency but the legislators who seemed not to know that budget consideration should be given priority.
“Spending six months to consider a budget shows lack of seriousness or understanding of the seriousness of budget to economic growth and development.
“Before the implementation of the budget can be felt, it will likely be in the early part of the last quarter of this year if there is no bureaucratic bottleneck in releasing money for capital projects.
“The major implication of this is that less than half of the budget will be implemented in 2017 and exiting from economic recession will take longer time than expected, probably in the first quarter of next year,’’ Tella said.
He added that issues relating to budget consideration and approval should be treated with urgency by the National Assembly to assist the executive arm in rebuilding the economy.
Mr Bayo Adeleke, former Secretary, Independent Shareholders Association of Nigeria (ISAN), said that with the budget signed there would be less tension in the economy.
He called on the government to ensure effective implementation of the budget for economic growth and development.
NAN reports that Acting President Yemi Osinbajo, had on June 12, signed the N7.44 trillion 2017 Appropriations Bill into law, accusing the National Assembly of fudging the budget. (NAN)
JNC/JI/PDE
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(Editing by Joseph Idika/Peter Ejiofor)