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| Mrs. Kemi Adeosun, Minister of Finance |
She gave
this forecast while speaking at the opening of the 7th Annual Bankers Committee
retreat in Lagos, a few days ago. She stressed that Nigeria was faced with some
fairly significant micro-economic challenges that required some fiscal
house-keeping.
Mrs. Adeosun
noted that the country, fortunately, has some head-room, as the debt to GDP
ratio is at 12 percent and that gives some space to run a deficit budget with
the specific objective of stimulating the economy.
She said: “To do so, we need to do some fiscal housekeeping. We have to
control the significant challenge we have around recurrent. If you look at
recurrent at a percentage of our total budget with the just approved
supplementary budget, it is about 90 percent. If we continue in that
trajectory, every penny we borrow will go into recurrent.”
Even though,
the minister was enthusiastic that Nigeria could overcome the challenges, she
warned that she was not attempting to white-wash everything or paint a rosy
picture.
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