The Peoples Democratic Party has alleged that the proposed N1.84tn borrowing for the N6.08tn budget presented to the National Assembly by President Muhammadu Buhari has made the nation a borrowing country. It said that with this, the country was going the way of Greece. The National Publicity Secretary of the main opposition party, Chief Olisa Metuh, said this in an interview with journalists in Abuja on Tuesday. He explained that a breakdown of the N1.84tn showed that Nigeria would be borrowing N5bn a day for the next 365 days, starting from January 1, 2016, without corresponding provision for economic production and a clear repayment plan, a scenario he said spelled doom for the nation. Metuh said, “Some people may be wondering why we raised an alarm about the budget. The reason is simple. “When we analysed the budget, we discovered it is a misshapen attempt at a Keynesian economics of applying deficit spending to stimulate growth even when studies have proven that GDP growth rates decrease by over 50 per cent when debt goes from low or moderate to high. But then we know the borrowing here is to pay huge campaign debt and fund a political war chest. “By every standard, this budget is a booby trap against the nation. When you break down the proposed N1.84tn borrowing, you discover that it amounts to borrowing N5bn everyday for the 365 days in 2016. The questions are: for what specific projects are they borrowing N5bn per day and how do they intend to pay back? “The President should explain to Nigerians how they intend to pay back the loan. Is it by continuous borrowing to service the interests? And does he intend to accumulate a colossal debt for future generations of Nigerians? “The truth is that this administration cannot justify this proposal. There is no known economy in the world where you can justify borrowing N1.84tn without specific projects and precise repayment outline. “This is worse still in an oil-driven, mono-economy at a time crude oil is selling for $30 per barrel and is speculated to go down to about $20 or even lower in the next one year. The idea can only come when you diversify the economy and boost production capacity in manufacturing and other critical sectors, a direction, which the budget clearly failed to provide.” Metuh added that from all indicators, the borrowing would be negative, alleging that the President was driving the country towards the path of Greece. He said, “They are driving us to be like Greece, and to plunge us into an unnecessary debt. When the PDP took office in 1999, we achieved the cancellation of inherited debts. “This administration, in seeking to accumulate debts, should know that there is no possibility that any country in the world will give us debt cancellation anymore.” Metuh said he and members of his party were worried about what he described as the negative economic policies of the present administration and the copying of strategies that he said failed in other economies. He said, “Recall that we had earlier alerted on the negative consequences of the retrogressive foreign exchange controls wherein this government is making it impossible for honest Nigerians to engage in free trade and regulate their personal activities. “There seems to be the erroneous belief that the controls will create foreign exchange stability or strengthen the naira by limiting foreign currency outflows. “This policy had badly affected other countries in the recent past; including Argentina, whose new government had to reverse the policy to save the country’s economy. Why then are we copying a policy that failed in other countries?” Metuh added that in practice, the kind of control the Federal Government was implementing had been proven ineffective in preventing capital flight. He challenged the Federal Government to a public debate on the budget. But the Presidency has said the money that will be borrowed in the 2016 Budget is for capital projects. The Senior Special Assistant to the President on Media and Publicity, Mallam Garba Shehu, made the clarification in an interview with one of our correspondents. Shehu was reacting to a statement credited to the PDP that the proposed N1.84tn borrowing from the N6.08tn Budget as presented by Buhari had made Nigeria a borrowing nation. Shehu said the borrowings would not be spent on any recurrent expenditure. He added that the Budget Office was working on the figures and it would be made known to the public once job was concluded on the document. “The borrowings are for capital projects, they are not for recurrent expenditures like feeding, salaries among others,” the presidential spokesperson said.
http://www.punchng.com/buharis-budgetll-turn-nigeria-to-a-debtor-nation-pdp/

[size=18pt]Gospel according to people who drove the country into debt in the first place
[/size]

Keep wailing

During your time, your budget always turn you into billionaires

SLIDEwaxie:
Keep wailing
During your time, your budget always turn you into billionaires

And this is exactly what APC govt is doing now. So where is the change?

Ghandi12:


And this is exactly what APC govt is doing now. So where is the change?

like seriously Who and who have turned billionaire since this administration... Please I want to know

SLIDEwaxie:
Keep wailing
During your time, your budget always turn you into billionaires

[img]http://rmonteux.files./2011/10/ffffunny-pload_22662_0.jpeg[/img]
The 2015 budget drafted by the last administration had a surplus of +0.1% and reflected the realities of falling oil prices.

This was the lowest budget passed by the Jonathan administration and also had the lowest surplus ratio.

The last administration left $26bn in the external reserves.

Today that figure is less than $2.5bn.

That means in just 7 mths, the APC govt has reduced our foreign reserves by 90%!

Another fact to consider, is that the 2015 budget has also been tarnished by the APC govt which has since taken a 2 trillion naira supplementary loan late in November. This is in light of the fact that the 2015 budget was never adhered to as all FG projects ongoing before May 29 have been abandoned by contractors owing to lack of funding by the Buhari administration.

In 2016, the APC govt is budgeting a 6.8 trillion naira budget based on debt.

This crooked APC govt is headed by a crook and hypocrite

The Buhari administration compensated his fellow crooked APC Governors in the guise of bailout with the LNG fund.

That money would have been better used in funding the FOREX market.

Instead it was given to the likes of that squanderer aregberascal who did not use it in paying Osun state workers their salaries.

The realities of this monumental waste are that business can not access forex and Nigerians have been shutout of international trade through the effective banning of naira based debit/credit cards abroad and online.

We are back to 1984!

APChangeZombie:


The last administration left $26bn in the external reserves.

Today that figure is less than $2.5bn.

That means in just 7 mths, the APC govt has reduced our foreign reserves by 90%!

I want to know... Please do you. have anything to support this claim....evidence from CBN will do..thank you

borrowing N2 trillion for N5,000 stipends is d most dullest plan ever in d history of makind.

Stupidity is when the future of the youths of this country is being mortgaged through debts (At least $9 billion next year) and no structure is being put on ground to generate income to service and repay those debts tomorrow, rather it's being used for a dubious welfare package that will be embezzled through public bureaucracy and the youths of this country appear docile.

In the medium term expenditure frame work, at least 25 per cent budget deficit for 2 or 3 years in a 70 per cent recurrent(salaries and entitlements) budget will leave this country with an additional N6 trillion($30 billion) debt and we will be back to 90's and early 2000's era (spending 30 per cent of our budget servicing debts) despite the fact that we had less over head then compared to now.

This is a clarion call to the national assembly to save the future of Nigerian youths, my own kids inclusive, from perpetual debt slavery and Greece experience by cutting down this budget deficit to at least 3 - 5 per cent, Saudi Arabia is doing so, Nigeria should do so.

adioolayi:


like seriously Who and who have turned billionaire since this administration... Please I want to know

admit u dnt know. Remita is an example of daily made billionaires. That is if you know them.

adioolayi:


I want to know... Please do you. have anything to support this claim....evidence from CBN will do..thank you

http://www.cenbank.org/Intops/Reserve.asp?MoveDate=12/29/2015%2010:25:46%20PM#_

Compare from May 29, 2015 till date and see for yourself

AS AT MAY 28, 2015 THE EXTERNAL RESERVES WAS IN EXCESS OF 28 BILLION USD

drss:
borrowing N2 trillion for N5,000 stipends is d most dullest plan ever in d history of makind.

If you think that is their plan then you are misinformed.

A huge chunk of that 500bn will go to their pockets back.

It is just another scam by the APC.

And the most annoying thing is that we in the better south are the ones alongside our children who will pay for this foolishness.

Currently they are now set to retrench, reduce wages in the civil service and increase income and corporate tax so that lazy illiterate Adamu and his harem of Aishas can get their 5k stipend.

APChangeZombie:


If you think that is their plan then you are misinformed.

A huge chunk of that 500bn will go to their pockets back.

It is just another scam by the APC.

And the most annoying thing is that we in the better south are the ones alongside our children who will pay for this foolishness.

Currently they are now set to retrench, reduce wages in the civil service and increase income and corporate tax so that lazy illiterate Adamu and his harem of Aishas can get their 5k stipend.

true. D north only produce terrorist. south east n south south will be d sacrificial cash cows for their bogus change scam.

lalasticlala gud moneying.

A template has already been set in Lagos by APC's local champion (Fashola) who left a debt burden of N160billion with a borehole and website costing N300m and N78m respectively. It's only in this part of the world that a govt will borrow money to finance welfarism. Aregbesola did the same in Osun by taking loans for the so-called school feeding project and left the State "technicality" bankrupt. I haven't seen any Nigerian parents who complain of inability to feed their wards in primary schools but Buhari wants to mortgage Nigeria for the sake of 2019.

OLADD:
A template has already been set in Lagos by APC's local champion (Fashola) who left a debt burden of N160billion with a borehole and website costing N300m and N78m respectively. It's only in this part of the world that a govt will borrow money to finance welfarism. Aregbesola did the same in Osun by taking loans for the so-called school feeding project and left the State "technicality" bankrupt. I haven't seen any Nigerian parents who complain of inability to feed their wards in primary schools but Buhari wants to mortgage Nigeria for the sake of 2019.

government is wise enough to borrow for capital projects only. Buhari is not mortgaging Nigeria, instead if that budget is properly implemented, you might not know your country again. and yes it will have the ability to pay back.

The budget is too small.

If the government is serious tens of billions of dollars is needed to build electricity, couple of billions of dollars is needed to revive solid mineral ministry and agric sector.

Hmmm, what of other infrastructure collapse in the country?

In fact government needs to borrow more than 100 billion dollars to build that dilapidated country.

We are already in debt. No thanks to your thieving party and it's numerous failed policies.

If that old man buhari is serious he should be determined to borrow as much as needed.

He should borrow, borrow and borrow and build the country. There is no other way.

The most important thing is that the money not to be stolen away but be used rightly.

OLADD:
A template has already been set in Lagos by APC's local champion (Fashola) who left a debt burden of N160billion with a borehole and website costing N300m and N78m respectively. It's only in this part of the world that a govt will borrow money to finance welfarism. Aregbesola did the same in Osun by taking loans for the so-called school feeding project and left the State "technicality" bankrupt. I haven't seen any Nigerian parents who complain of inability to feed their wards in primary schools but Buhari wants to mortgage Nigeria for the sake of 2019.

hahahahhaha remember d ipad opon scam in osum? wasting state funds on fruitless venture was aregberewa's specialty. osun state is a perfect example of a debt ridden failed state. same way nigeria is heading with d 2016 budget of scam.

APChangeZombie:


http://www.cenbank.org/Intops/Reserve.asp?MoveDate=12/29/2015%2010:25:46%20PM#_

Compare from May 29, 2015 till date and see for yourself

AS AT MAY 28, 2015 THE EXTERNAL RESERVES WAS IN EXCESS OF 28 BILLION USD

Gross. Liquid
5/28/2015 29,595,284,789 28,719,649,022


12/23/2015 29,309,588,933 28,601,798,906




Guy.....you can lie for devil.....you claimed PMB administration has spent over 90% of external reserve since inception... and that's why I asked you for a prove. Yes, you gave aka link and the figures above was what I got from CBN link you gave ....are you still saying the difference between those figures is actually 90%



in other news, GEJ administration blew more than $4B in five months! Na Wa ooo


Gross. Liquid

12/31/2014 34,468,621,681 33,487,531,704

5/28/2015 29,595,284,789 28,719,649,022

juman:
If that old man buhari is serious he should be determined to borrow as much as needed.

He should borrow, borrow and borrow and build the country. There is no other way.

so dat nigeria will end up like osun well any plan dat will hastily collapse d zoo is fine by me.

mars123:
government is wise enough to borrow for capital projects only. Buhari is not mortgaging Nigeria, instead if that budget is properly implemented, you might not know your country again. and yes it will have the ability to pay back.

Do you know the percentage of the borrowing earmarked for capital projects? Are you aware that a whopping N500billion was proposed for the so called social welfare? Imagine if that amount was injected into large scale commercial farming, do you know its likely impact on our economic diversification drive? Borrowing money to finance recurrent expenditure is not only insensitive, it can be economically suicidal.

OLADD:


Do you know the percentage of the borrowing earmarked for capital projects? Are you aware that a whopping N500billion was proposed for the so called social welfare? Imagine if that amount was injected into large scale commercial farming, do you know its likely impact on our economic diversification drive? Borrowing money to finance recurrent expenditure is not only insensitive, it can be economically suicidal.

my understanding is that the budget will be funded by both revenue (exports, tax, fines, etc) and borrowing ( domestic and international). what economist will tell you is that it doesn't make economic sense to borrow to fund even 1% of recurrent expenditure. it is an illogical move. So therefore, i think the government with all its experienced ministers in the finance and national planning sectors will already know this. There is enough revenue for recurrent, so i think all borrowed funds will be used for capital projects which will in turn raise revenue over the long term. As for the social welfare, i hear that that too will be done in a way the government will also get its money back in the long term. I think the government has a good budget 'if and only if' it is well implemented.

Buhari should be careful. He shouldn't set a stage that we may not be able to recover from. The NASS should cut the proposed budget to reflect reality

They want to convert Nigeria to another Osun state

adioolayi:


Gross. Liquid
5/28/2015 29,595,284,789 28,719,649,022


12/23/2015 29,309,588,933 28,601,798,906




Guy.....you can lie for devil.....you claimed PMB administration has spent over 90% of external reserve since inception... and that's why I asked you for a prove. Yes, you gave aka link and the figures above was what I got from CBN link you gave ....are you still saying the difference between those figures is actually 90%



in other news, GEJ administration blew more than $4B in five months! Na Wa ooo


Gross. Liquid

12/31/2014 34,468,621,681 33,487,531,704

5/28/2015 29,595,284,789 28,719,649,022

But now you know that Jonathan left $29bn

Yeye

APChangeZombie:

But now you know that Jonathan left $29bn
Yeye

And now it's clear ...the $29bn is still there

adioolayi:


And now it's clear ...the $29bn is still there

It is down to $2.5bn


Don't trust Buharis lying govt.

APChangeZombie:

It is down to $2.5bn

Don't trust Buharis lying govt.

Bring out fact to that claim