BMO says budget review; assessment body shows a proactive govt

The Buhari Media  Organisation (BMO), has said that the review of the 2020 Budget and the setting up of a committee to assess the consequential impacts of the pandemic on the economy shows that President Muhammadu Buhari as a proactive leader, a man on his toes and a President on top of his game.

According to the BMO, President Buhari ordered a review of the country’s Budget 2020, to reflect current realities in the oil sector and to respond to emerging threats posed by the Covid-19.

In a statement signed by its Chairman, Niyi Akinsiju and Secretary, Cassidy Madueke, BMO said President Muhammadu Buhari’s dictum on the review of 2020 Budget is an astute response to the economic and health challenges that we are faced with at this point in time.

“President Muhammadu Buhari has shown a capacity for aligning reality with expectations and had identified where to cushion apparent revenue shortages on the heels of the pandemic.

“The Federal Government, in the proposed review of 2020 Budget has designed and institutionalised a revenue stabilisation program and cost-cutting governance.

“The new budget proposal reduces the oil benchmark from $57 per barrel to $30 per barrel, oil production volume reduced from 2.18 million barrels to 1.70 million barrels, the official exchange rate was increased from N305 to N360 to a US dollar

“The revenue projection for the 2020 budget was also reduced by N3.3 trillion (about 39 percent) from the initially approved amount of N8.41 trillion to N5.08 trillion.

“Also, statutory transfers were cut by N152.67 billion from N560.47 billion to N407.8 billion, capital expenditure was reduced by N155 billion from N2.78 trillion to N2.62 trillion and recurrent expenditure reduced by N25 billion from N4.49 billion to N4.46 billion.

“Our fiscal deficit was increased from N2.2 trillion to N5.18 trillion, which is not unrelated to the drop in revenue. The new proposal states that the fiscal deficit is expected to be financed through fresh borrowing of N4.43 trillion as against the initial borrowing plan of N1.59 trillion.

“Oil revenue suffered the highest reduction of N2.38 trillion from the initial approved amount of N2.63trillion to N254.25 billion.”

The group noted that the pandemic has caused economic disparity and inequality that constituted an imminent threat to our country’s economy, hence the need for government to address these threats by introducing stimulus packages for businesses affected by the covid-19 pandemic.

There are also Central Bank of Nigeria’s (CBN) palliatives measures as well as public and economic welfare policies for the vulnerable sections of the society

“A nation decimated by the disease cannot have a functioning economy, but with this budget review, we are certain of a predictable and stable economy, going forward,” the statement concluded.