Saturday, 8 February 2014
The House of Representatives, has faulted the Finance Minister Dr (Mrs) Ngozi Okonjo-Iweala's claim that there is a decline in domestic borrowing while there has been an uncontrollable rise in government recurrent expenditure in the budget.
According to the parliament, the economy cannot be bright when government has earmarked N572 billion to service N7.1 trillion domestic debt in the 2014 Budget.
The house in response to the claim of the finance office made onThursday when it explained that the Federal Government had been instrumental to a reduction in domestic borrowing while speaking on the “uncontrollable rise in government recurrent expenditure in the budget.”
Tasking Okonjo-Iweala, the House said no one was excited about “the celebrated insignificant decline in domestic borrowing.”
It added: “The questions the people are asking are, ‘borrowing at what cost? What is the cost of the so-called reduced domestic borrowing? How is it serviced? How a
The House of Representatives spoke in a statement by the Clerk of its Committee on Finance, Mr Farouk Mustapha.re the decisions taken?”
“For us, we have carefully refrained from responding to the Minister’s assertions and claims over the past couple of weeks in view of the fact that a public hearing at which the actual state of our economy will be known has already been scheduled for March 3-6, 2014,” the statement started
It continued: “Nonetheless, we are compelled to say, as we have often stated, that no one is excited about the celebrated insignificant decline in domestic borrowing.”
” The questions the people are asking are, ‘borrowing at what cost? What is the cost of the so-called reduced domestic borrowing? How is it serviced? How are the decisions taken?’
” Beyond that, since the minister is in the habit of comparing our situation with those of other countries, why would she not tell Nigerians that the cost of our domestic borrowing remains one of the highest in the whole world?
“In 2011,our domestic debt stock was N5.6trillion. It rose to N6.5trn in 2012, and, by 2013, it climbed higher to N7.1trn.
” Domestic borrowing for 2011 stood at N852billion, N744bn in 2012 and N588bn in 2013. For 2014, it is put at N572bn.
” The cost of servicing the debt was N495bn in 2011. In 2012, it increased to N559bn and jumped to N591bn in 2013.
In 2014, a whopping N712bn has been earmarked for debt servicing.
“On the issue of rising recurrent expenditure, the minister should tell Nigerians her accomplishments in the drive to lower it instead of repeatedly passing the buck.”
“On the issue of rising recurrent expenditure, the minister should tell Nigerians her accomplishments in the drive to lower it instead of repeatedly passing the buck.”
” It does not help to keep laying the blame at the doorsteps of previous administrations or attempt to drag late President Umaru Yar ‘Adua and President Goodluck Jonathan into the problem.
“The minister said cuts have been made in the recurrent expenditure but in what areas and by how much? Are the cuts made anything to be proud of?”
