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Published on 2024-03-11 21:20:26
The Independent Media and Policy Initiative (IMPI) commended the federal government for prioritizing capital expenditure over recurrent spending in the budget, marking a significant shift in the country’s budgetary trend. Niyi Akinsiju, Chairman of the Forum, praised this decision in a statement, highlighting the government’s commitment to driving tangible economic growth.
IMPI emphasized the positive impact of a budget that allocates more funds to capital projects, stating that it not only fosters economic development but also enhances the quality of life for citizens. The policy think tank echoed the sentiments of the Nigerian Institute of Social and Economic Research (NISER) in emphasizing the importance of monitoring and evaluating funds earmarked for capital expenditure to spur meaningful economic progress.
The 2024 budget, totaling N28.777 trillion, signifies a landmark budget that allocates N9.9 trillion to capital expenditure, surpassing the N8.7 trillion allocated for recurrent spending. Despite the National Assembly’s approval of a slightly increased budget from the original proposal, the budget is set to be financed through a non-debt revenue of N19.6 trillion, with a deficit of approximately N9.18 trillion.
IMPI applauded President Bola Tinubu’s administration for embracing economic reforms aimed at yielding long-term benefits for Nigerians. The policy think tank also criticized previous administrations for prioritizing recurrent expenditures over capital projects during periods of economic prosperity, resulting in missed opportunities for infrastructural development.
The persistent budget deficits and disproportionate allocation of funds towards recurrent expenditures have hindered the country’s progress, especially during times of economic growth. IMPI called attention to the need for prudent financial management and emphasized the importance of prioritizing capital projects to drive sustainable development.
President Tinubu’s cost-cutting measures and plans to implement public sector reforms are seen as promising steps towards enhancing budget implementation and prioritizing capital expenditure. IMPI expressed optimism about achieving full implementation of the capital expenditure aspect of the 2024 budget, leveraging revenue from civil service reforms to fund critical projects for the benefit of Nigerians.
In conclusion, IMPI commended the federal government for rebalancing the budget towards capital expenditure and emphasized the need for continued fiscal discipline and strategic investments to drive long-term economic growth and improve the well-being of citizens. The shift towards prioritizing capital projects reflects a commitment to building a more resilient and prosperous Nigeria for future generations.
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