N5.35tr Capital Expenditure For 2022 Budget Praised By MAN

“The increase is an indication that government intends to maintain its quest to further narrow the infrastructure gap, secure the health of the populace, improve human capacity development and protect lives and property in the country,” the association said.

Ajayi-Kadir commended the government for early preparation of the proposed budget 2022, which is aimed at accelerating the pace of economic recovery, promote economic diversification, enhance competitiveness, ensure social inclusion and guarantee sustainability.

“MAN also notes the content of the speech of the President of the Federal Republic of Nigeria on the proposed Budget 2022, particularly the extensive effort to give account on the implementation performance of the 2021 budget and achievements of the government, while we await the publication of the breakdown,” he stated.

The MAN DG said manufacturers were expectant that the budgetary aspirations would be achieved considering the prevailing and foreseeable global, continental and national economic developments.

He, however, said judging from the content of the address of the Presidentand the presentation of the Minister of Finance, Budget and NationalPlanning, the general character of the proposed budget suggests huge fiscal deficit of N6.26 trillion.

“This translates to further increase in debt servicing responsibility, upscale in drive for internally generated revenue, with moderate support for economic and productive activities, including manufacturing.

“It is, therefore, imperative for government to exercise caution in borrowing and work diligently to lower recurrent expenditure. This will positively impact the planned budget deficit and the efficacy of the budget as a whole,” Ajayi-Kadir said.