Atiku Criticises Buhari’s 2021 Budget Proposal

Former Vice-President and Peoples Democratic Party presidential candidate in the 2019 election, Atiku Abubakar, has criticised the 2021 budget proposal presented by President Muhammadu Buhari, arguing that its projected deficit raises concerns under the Fiscal Responsibility Act.

Atiku, in a statement posted on social media, focused particularly on the proposed budget deficit of N5.21 trillion.

He argued that the figure appeared to exceed the three per cent of Gross Domestic Product threshold contained in the Fiscal Responsibility Act of 2007, unless otherwise approved within the provisions of the law.

Atiku said Nigeria’s 2019 GDP was about $447 billion and calculated that three per cent of that amount, using the official exchange rate he cited, would be approximately N5.07 trillion.

On that basis, he maintained that the proposed N5.21 trillion deficit was above the statutory benchmark.

The former vice-president further argued that the situation could be more serious because Nigeria’s economy had weakened since 2019, with lower GDP projections following the economic impact of the COVID-19 pandemic.

He said the size of the deficit reflected what he described as the increasingly difficult state of Nigeria’s public finances and criticised the Buhari administration’s reliance on borrowing.

Atiku acknowledged that the Fiscal Responsibility Act allows the National Assembly to approve a deficit above the three per cent threshold under certain circumstances.

He nevertheless questioned whether a higher deficit could be considered sustainable given the amount of government revenue being committed to debt servicing.

According to him, the relationship between debt servicing and capital expenditure should be a major consideration when lawmakers assess the proposal.

Atiku therefore called on Buhari to reconsider the budget and adjust it to reflect the provisions of the Fiscal Responsibility Act and the economic realities facing the country.

He warned that failure to address the concerns surrounding the deficit could place additional pressure on Nigeria’s economy and public finances.