The Centre for the Promotion of Private Enterprise (CPPE) has faulted plans by the Federal Government to service debt with N15 trillion in 2025, stating that this will constitute a major risk to the nation’s fiscal space.
This is even as the group described the N34.82 trillion revenue projection of the Federal Government as ambitious, cautioning that the revenue projection should not translate to additional pressure of taxes, levies, and fees on investors in the economy.
According to the CPPE, “The president’s budget speech has its upsides and downsides. But the messaging was very good and inspiring.
“The budget priorities are laudable and appropriate for the prevailing economic and social conditions.
“According priorities to Defence and Security, infrastructure, health, and education reflects a commendable commitment to fix the critical challenges impeding the performance of the economy.
“The President’s optimism for a positive economic outlook was anchored on the following assumptions: reduced fuel importation; export of refined petroleum products; better agricultural output on the back of improved security in the country; and improved forex inflows.
“These are realisable assumptions and are indeed the pathways for economic revitalisation and growth.
“But unwavering political, policy, and resource commitments are imperative to make this happen.
“Some of the downsides include the plan to commit N15 trillion to debt service. This is a major risk to the fiscal space in 2025. It is worthy of note that this concern was also shared by the president when delivering his speech.
“There is an urgent need to take steps to reduce the country’s debt exposure. It is also important to address the high cost of government borrowing, both locally and internationally. Interest costs on our sovereign debts are generally very high.
“Revenue projection of N34.82 trillion is also ambitious. It is hoped that this would not translate to additional pressure of taxes, levies, and fees on investors in the economy.
“The budget needs to upscale policy commitments to mitigating the social costs of the current reforms. We need to see more systemic and impactful policies to ease the cost of reforms on the vulnerable segments of society.”
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