OrderPaperToday- The House of Representatives Committee on Appropriations has said that for Nigeria’s economy to be stimulated, the capital component of the 2016 budget should have been increased.
In the Committee’s report on the 2016 Appropriation Bill signed by its Chairman Abdulmumuni Jibrin, the ratio of capital to recurrent components of the budget is put at 30:70%.
According to the lawmakers, “the 2016 Bill seeks to stimulate the economy but the recurrent expenditure as compared to the capital component at a ratio of 30:70% is still very high.
“This takes away from the infrastructure-stimulus funding that the country so desperately needs for development.”
The report therefore advised the federal government to drive down recurrent expenditure in relation to capital expenditure, more than the 30:70 ratio it stands at in the Bill.
The report said “such a ratio in favor of an increased capital expenditure profile will ensure that the capital thrust of the budget is delivered to the Nigerian people.
“From the 2017 fiscal year, Government should endeavour to shore up capital expenditure by substantially reducing recurrent expenditure. This is the only way to free up resources for critical infrastructure towards economic growth and development.”