By Odunewu Segun.

 More reactions are still trailing the 2016 budget; this time from the People’s Democratic Party.  The Party said the N6.08 trillion budget proposals may throw the country into severe economic recession with the decision of the FG to borrow N1.8trn.

The National Publicity Secretary of the Party, Chief Olisa Metuh who disclosed this recently while addressing journalists said with the proposed N1.8trn loan, and no clear cut measures put in place on how to repay the loan, the country may be heading for a serious economic crisis in 2016.

“The President should explain to Nigerians how they intend to pay back the loan. Is it by continuous borrowing to service the interests, and does he intends to accumulate colossal debt for future generations of Nigerians?”

He said when the party analysed the budget proposals; it discovered that the proposal was a misshapen attempt at a Keynesian economics of applying deficit spending to stimulate growth even when studies have proven that GDP growth rates decrease by over 50 per cent when debt goes from low or moderate to high.

Chief Olisa Metuh said the budget as presented by President Muhammadu Buhari is a booby trap against Nigeria. “When you break down the proposed N1.84 trillion borrowing, you discover that it amounts to borrowing N5 billion every day for the 365 days in 2016. The questions are: for what specific projects are they borrowing N5 billion per day and how do they intend to pay back?”

 “The truth is that this administration cannot justify this proposal. There is no known economy in the world where you can justify borrowing N1.84 trillion without specific projects and precise repayment outline’.

He said with the consistent reduction in the revenue accruing to the federal government dwindling with the reduction in the prices of crude to $30 dollars, and the likelihood of a further reduction, the proposed N1.84trn loan would only compound the woes of the country.

 “The idea can only come when you diversify the economy and boost production capacity in manufacturing and other critical sectors, a direction, which the budget clearly failed to provide.”

President Muhammadu Buahri had presented last a N6.08 trillion Naira budget proposal for 2016 that was predicated on $38 per barrel oil benchmark; 197 Naira exchange rates, and a also a decision to borrow N1.8trn to finance it.

The budget is an increase of about 40 per cent from the previous budget that was N4.357 trillion Naira presented to the National Assembly in 2014 by ex-President, Goodluck Jonathan’s administration.

President Muhammadu Buhari has explained that despite the fall in the international price of crude oil, measures taken to blck leakages in the nation’s revenue generating agencies would ensure enough cash to fund the N6 trillion budgets

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