The Rivers State chapter of Trade Union Congress of Nigeria has expressed fears over the achievement of the 2016 budget by the federal government if it depends on the $38 per barrel crude oil price benchmark.
Chairman of the chapter, Comrade Chika Unegbu, in a statement said prevailing oil price is lower than the benchmark even as he revealed that it’s being projected that oil crude oil could fall to $20 per barrel in 2016.
He said: “Anyone who is a keen observer of the events that are shaping the crude oil price will recognize that we are in for a sustained low crude oil price regime. It is doubtful if the budgeted oil revenue of N820billion will be realized in 2016. If the budgeted oil revenue is not realized, this will negatively impact on the 2016 budget performance.”
Unegbu who spoke on government’s plans to raise N1.5 trillion from independent revenue sources advised that government should clearly explain where the revenue sources will come from, as the budget figure is 208% of the 2015 budget, representing N489 billion.
“They come with the risk that they may most likely be unachievable. If they become unachievable, then the planned expenditure, especially the planned N1.8 trillion capital expenditure will become a mirage.
“The budget deficit is the highest ever budget deficit in Nigeria and it is coming at a time when the economy is in severe crises and when the total indebtedness of Nigeria is high. According to the government, the additional borrowing to finance the 2016 budget will increase Nigeria’s debt profile to 14% of our GDP. The fact is that Nigeria’s debt profile is huge and presents a burden to the economy,” the congress explained.
__________
Follow us on Twitter at @thesignalng
Copyright 2015 SIGNAL. Permission to use portions of this article is granted provided appropriate credits are given to www.signalng.com and other relevant sources.
