President Buhari lay the 2017 budget document on the table at the National Assembly

Prof. Uche Uwaleke of the Nasarawa State University, says the contents and projections  of the 2017 budget proposal presented by President Muhammadu  Buhari are based on realistic assumptions.

Uwaleke, a Professor of Finance and Banking, stated this in an interview with the News Agency of Nigeria (NAN) in Abuja on Thursday.

President Muhammadu Buhari had on Wednesday in Abuja presented a budget of N7.30 trillion for 2017 before a joint session of the National Assembly.

The President had said that N2.24 trillion, representing 30.7 per cent of the 2017 budget, would be committed to capital expenditure aimed at pulling the economy out of recession as quickly as possible.

Uwaleke said the oil price benchmark of  42.5 dollar per barrel was a favourable projection given the OPEC agreements on production cuts in the international oil market.

He further said the output projection of 2.2 million barrels per day was based on the optimism that the Federal Government would address the agitations in the Niger Delta that resulted to the vandalism of oil infrastructure.

The don said government should be commended for using a more realistic exchange rate of N305 to the dollar, instead of the earlier N290 to the dollar provided for in the Medium Term Expenditure Framework.

According to him, it is gratifying to note that capital expenditure is not below 30 per cent of the proposed budget size with the power, works and housing sectors taking the largest chunk.

He said it was laudable that more attention would be given to foreign loan servicing as opposed to domestic loans.

He stated that domestic loans are more expensive to service.

Uwaleke described the 2017 budget proposal as a good document, noting that the challenge still remained full implementation of the budget.

He, therefore, urged the National Assembly to ensure accelerated hearing on the budget for quick assent and implementation by the executive arm. (NAN)

KC/YEE