Sunday, December 19, 2010

Experts pick holes in 2011 budget proposals

Experts pick holes in 2011 budget proposals ; Experts have opined that the 2011 budget proposal as presented to the National Assembly By President Goodluck Jonathan last week, does not address infrastructural challenges in the country.

According to a renowned Economist, Dr. Osaro Obobaifoh, the Federal Government was proposing 76.2 per cent of the budget on recurrent expenditure, and leaving 23.8 per cent on capital expenditure, implied that the budget was not targeted at employment generation or creation of fixed assets like infrastructure.

Obobaifoh, a don, noted that to attain foreign exchange stability, there was need for tightening of the monetary policies, stressing that fixing the exchange rate of N150 for the US dollar was ideal but would put the foreign exchange market under pressure.

Director, Greengate Strategic Partners, Kayode Akindele, said that: “The 18 per cent decrease in the budget proposal for 2011 from that of 2010 is welcomed as the 2010 budget was highly inflationary.

“The National Assembly has often inflated the budget proposal from the executive, so it remains to be seen what the final figure will be. There are still some issues that stick out from the headline figures such as oil production at 2.3 million bpd. Nigeria has not achieved this figure for many years; not even with the amnesty in the Niger-Delta in 2010; the average figure was about 2 million bpd.”
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