The Federal government has borrowed N882 billion to finance the 2015 budget according to Mrs Anastasia Nwaobia the permanent secretary to the Federal Ministry of Finance. She made this disclosure yesterday in her presentation to the House of Representatives Ad-Hoc Committee on Non-Implementation of Capital Projects in the 2015 appropriation in Abuja on Tuesday.
She informed that the growth in GDP which was projected to grow t 5.5% per annum has actually shrunk to 2.65%she rolled out data such as the public debt to GDP ratio which is currentLY 10.6% and debt service to revenue ratio of 19.6% against the rule of thumb threshold of 28%. External debts stood at $7.7 billion and $3.4 billion for states and the FCT.
The economy is not expected to outperform global growth rate of 3.3 per cent. Significant drop in oil price has led to exchange rate depreciation, pushing the dollar to N197 as of June 2015.
On the performance of the 2015 budget, N3.45tn was budgeted for 2015 out of which capital appropriation was N557bn. Of this amount, N194.49bn has been released as of September 15, representing 34.89 per cent of total releases.
These factors have aggravated an already bad situation leading to a contraction in the economy, increase in interest rates and inflation.
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