The Coalition of United Political Parties, CUPP, has on Friday, October 9 kicked against the idea of borrowing the sum of 4 trillion naira to find the deficit in 2021 budget.
This concern was disclosed by the National Secretary of CUPP, High Chief Peter Ameh, who stated that although the early presentation of the 2021 budget by President Muhammadu Buhari was commendable, borrowing such amount is very risky and calls for worry.
“I must sincerely commend Mr President for the early submission of the 2021 budget proposal, and its prompt consideration and passage by the National Assembly will be highly appreciated by the Nigerian people.
“The submission of the budget proposal to the National Assembly in good time will definitely allow the National Assembly sufficient period of time to consider the budget and also give the ministries, agencies, and parastatals to defend their budget proposals.
“The budget parameters and assumptions are realistic except the exchange rate of NGN379 to USD. The exchange rate is unrealistic due to differing exchange rate windows being operated by the Central Bank of Nigeria which distorts projections by the private sector which usually requires forex for their day to day operations.
“On the aspect of Gross Domestic Product which is GDP growth rate projected at 3% is a little ambitious in view of the impact of the COVID- 19 on the economy expected to linger beyond next year.”