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The Peoples Democratic Party has alleged that the proposed N1.84tn borrowing for the N6.08tn budget presented to the National Assembly by President Muhammadu Buhari has made the nation a borrowing country.
It said that with this, the country was going the way of Greece.
The National Publicity Secretary of the main opposition party, Chief Olisa Metuh, said this in an interview with journalists in Abuja on Tuesday.
According to PUNCH, he explained that a breakdown of the N1.84tn showed that Nigeria would be borrowing N5bn a day for the next 365 days, starting from January 1, 2016, without corresponding provision for economic production and a clear repayment plan, a scenario he said spelled doom for the nation.
Metuh said, “Some people may be wondering why we raised an alarm about the budget. The reason is simple.
“When we analysed the budget, we discovered it is 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. But then we know the borrowing here is to pay huge campaign debt and fund a political war chest.
It said that with this, the country was going the way of Greece.
The National Publicity Secretary of the main opposition party, Chief Olisa Metuh, said this in an interview with journalists in Abuja on Tuesday.
According to PUNCH, he explained that a breakdown of the N1.84tn showed that Nigeria would be borrowing N5bn a day for the next 365 days, starting from January 1, 2016, without corresponding provision for economic production and a clear repayment plan, a scenario he said spelled doom for the nation.
Metuh said, “Some people may be wondering why we raised an alarm about the budget. The reason is simple.
“When we analysed the budget, we discovered it is 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. But then we know the borrowing here is to pay huge campaign debt and fund a political war chest.
