This lawmaker said, Proposed N12.43trillion deficit for the 2023 budget are disturbing …

By Tolulope Oke

The Senate dissented from the Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) for 2023 –2025, which proposed a N12.43 trillion deficit and N6 trillion in tax and import duty waivers in the N19.76 trillion budget, as well as the Minister of Finance, Budget, and National Planning, Zainab Ahmed.

The proposed N19.76 trillion budget for 2023, according to Ahmed, would have a deficit of N12.43 trillion due to projected N6 trillion tax credits, N6 trillion in import duty exemptions, and more than N6 trillion in fuel subsidies, if kept in place for the entire year.

The Senate Committee on Finance, chaired by Senator Olamilekan Adeola, shared the legislators’ opinions during a discussion on Tuesday at the National Assembly in Abuja.

Prior to submitting the proposals to the National Assembly for consideration and approval, Senator Adeola asked the minister to critically review downwards both the projected N12.43 trillion budget deficit and the N6 trillion in tax and import duty waivers. Senator Adeola was obviously concerned by the minister’s submission.

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The lawmaker stated that “The proposed N12.43trillion deficit for the 2023 budget and N6trillion waivers are very disturbing and must be critically reviewed. Many of the beneficiaries of the waivers are not plowing accrued gains made into expected projects as far as infrastructural developments are concerned.

“The same goes for the tax credit window offered by FIRS to some companies. Billions and trillions of naira can be generated by the government as revenue if such windows are closed against beneficiaries abusing them and invariably provide the required money for budget funding with fewer deficits cum borrowings.

“The Nigeria Customs Service should help in this direction by critically reviewing waivers being granted on import duties for some importers just as the FIRS should also review the tax credit window offered to some companies without corresponding corporate social services to Nigerians in terms of expected project executions like road construction.’’