Hard Time for Nigerians As Federal Government Introduces Austerity Measures
Category: Nigerian National News
Related Posts:
ABUJA—The Federal Government, yesterday, introduced some austerity
measures and scaled down the crude oil bench mark for the 2015 budget.
In a bid to insulate the economy from falling crude oil prices the
federal government announced far-reaching policy measures to deal with
the crashing crude oil prices, cutting 2015 oil benchmark from $78 to
$73 per barrel. Crude oil prices dropped to $77.76 per barrel, some
cents below the $78 earlier proposed to the National Assembly as bench
mark for the 2015 budget.
The Federal Government, yesterday, introduced some austerity measures
and scaled down the crude oil bench mark for the 2015 budget.
The Federal Government, yesterday, introduced some austerity measures
and scaled down the crude oil bench mark for the 2015 budget.
The Coordinating Minister for the Economy and Minister of Finance, Dr.
Ngozi Okonjo-Iweala told journalists in Abuja that the decision to cut
revenue projection was part of measures designed to maintain economic
stability, boost non-oil revenues further, plug loopholes and waste, as
well as cut unnecessary expenditures in order to cope with the
situation.
Keeping to her earlier warning that the government will soon introduce
measures to protect the economy she said: “As part of the response to
falling oil prices, the Medium Term Expenditure Framework (MTEF) and the
Budget 2015 proposal to the National Assembly have been revised.
Government is now proposing a benchmark of $73 per barrel to the
National Assembly compared to the earlier proposed benchmark of $78.
“Given the nature of the oil market, we needed to see the extent and
trend of the oil price in order to take the right measures. Panic is not
a strategy. It’s important that our strategies are based on facts and a
clear understanding of both the strengths of the economy and the
challenges posed by the drop in oil prices which is currently at $79 for
our premium Bonny Light Crude.
“The drop in oil prices is a serious challenge which we must confront as
a country. We must be prepared to make sacrifices where necessary. But
we should also not forget that we retain some important advantages such
as a broad economic base driven by the private sector and anchored on
sound policies.”
FG determined to strengthen economy
Dr. Okonjo-Iweala assured, however, that the federal government would
continue to fund infrastructure, job creation, agriculture and human
capital development, especially the health and education sectors, as
part of the Goodluck Jonathan administration’s determination to
strengthen the economy to positively affect the poor.
“To show how serious government is about job creation, President
Goodluck Jonathan”, she disclosed, “will tomorrow, (today) November 17
launch the 4th edition of YouWin to support another 1,500 entrepreneurs
along with a private equity fund for entrepreneurs.
“Our strategy is to continue to strengthen the sectors that drive growth
such as infrastructure, agriculture and housing while reducing waste
with a renewed focus on prudence.”
According to her, the policy was scenario-based and that additional measures would be introduced if oil prices declined further.
The minister said that the basket of measures with growth which has
remained above six per cent, reassure investors and keep the economy on a
stable course through the crisis.
Curtailing wastage
According to Dr. Okonjo-Iweala, there would be no more foreign travels
by civil servants unless for purposes that could be fully defended as
absolutely necessary.
In addition, foreign training programmes would be stopped and all trainings done in-country.
The exception, she said, would be to secure foreign sponsorship for such travels and training abroad.
The Minister added that the federal government would work to eliminate
duplication among the functions of the Ministries, Departments and
Agencies, MDAs, by working on the Steve Ornsaye Report.
She, however, observed that since the MDAs to be re-aligned were created
by law the National Assembly would be required to repeal such laws
before any administrative step could be taken.
Luxury Goods Tax
Part of the immediate steps to cushion the fall in oil revenue, the
minister said, was to significantly increase non-oil revenue in the
country, as she announced an aggressive tax administration in which,
private jets, yachts, Champagne and a list of others to be announced
would be taxed.
The minister said that the idea of Luxury Goods Tax was not to stop
wealthy members of the Nigerian public from enjoying their wealth but to
create an avenue for them to share with those at the lower levels of
the ladder.
According to the minister, the issue of capital flight was now engaging
the attention of the administration, just like many other African
nations, saying that a study has been commissioned to determine the
activities of corporate citizens and other individuals who were evading
taxes as well as those involved in capital flight.
She added that monetary measures should also be expected in the efforts
to ensure a stable Nigerian economy, despite the falling oil prices.
Okonjo-Iweala dismissed suggestions of printing Naira notes just to keep
spending, as according to her, that would be the worst that could
happen to an economy, especially among the poor, adding, “spiral
inflation is the worst enemy of the poor.
“Printing money without adequate revenue support will lead to serious
consequences for the country. It will spur inflation as the experiences
of Germany in the early part of the last century and more recently,
Argentina and Zimbabwe demonstrate. This prescription will victimize the
poor and middle class that it is supposedly protecting,” she said.
Leave your comment(s)
You can also send your articles and stories to admin@ackcity.net
Be Our Fan On Facebook
Be Our Fan On Facebook
Get updates as they come via;
BB: 2924A048 BB Channel Pin: C00352CD2
WhatsApp: +2348034463786
Advertise: Call: +2348088538618, E-mail: admin@ackcity.net
Related Posts:
- PHOTOS: "Have you eaten? Come and eat amala with me"- Atiku Posts Pictures of Him and Obasanjo on Facebook
- Tambuwal picks APC presidential nomination form
- Late Abiola’s Wife Sues PDP Over Presidential Elections
- Have You Seen The New N100 Note? (PICTURED)
- €5.2m looted funds by the Abachas, in Irish accounts frozen
No comments