Borrowing to fund 2022 budget, inevitable — Lawan

The Senate President, Ahmad Lawan, on Tuesday declared that borrowing to fund the 2022 Budget is inevitable until more revenues are generated.

Lawan stated this on Tuesday while welcoming his colleagues back to plenary from the Christmas and New Year holidays.

The Senate President said with regret that borrowings remained the only option left for the country to fund the 2022 Budget due to poor revenue being generated by the nation at the moment.

Lawan however said efforts would be intensified by the Senate to carry out aggressive oversight activities that would make the revenue generating agencies to be more alive to their responsibilities.

He said: “Funding of the 2022 Budget is predicated on significant borrowing.

“Our country is caught between the devil and the deep blue sea.

“We have to construct and provide infrastructure in all parts of our country because infrastructure is needed for our nation to develop.

“However, we do not generate enough revenues to fund the provision of such infrastructure.

“Until more revenues are generated, the country has to borrow and also resort to other sources of funding our infrastructural development.

“We cannot continue to borrow endlessly.

“It is imperative that we need to improve on the revenue to Gross Domestic Product ratio.

“At about 8 per cent revenue to GDP ratio, our country is basically at 50 per cent of what is required of the revenue to GDP of 15 per cent for it to support any significant economic development.

“The Senate will develop a strategy of engagement with revenue generating agencies on how to make them achieve their targets and generate more revenues in 2022.

“The Senate will ensure that we boost their revenue generating drive with a view to reducing borrowing for development of our much needed infrastructure.

“This is a major challenge for our development and we need to treat as such.

“The oversight of the implementation of the budget is a critical function of the National Assembly.

“We must therefore strategise on effective oversight of the implementation of the 2022 Budget.

“This is going to be the last budget that would be fully implemented for 12 months in the life of the Ninth Senate.

“We, therefore, need to supervise very closely.”