Over the years, provisions have always been made for supplementary budgets within a fiscal year after the national budget has been approved. Is this the right approach? Maybe not. This practice might be linked to macroeconomic dynamics, which often result from economic shocks, either domestic or global.
Such shocks can disrupt the initial assumptions and projections made during the budgeting process, necessitating adjustments through supplementary budgets. Read also: National Assembly to receive ‘N6.6trn’ supplementary budget next week Butis borrowing an imperative measure to cover these gaps? While some economists and public policy analysts think otherwise, some supporters concur.
This raises further questions: for how long can we continue this approach without matching it with revenue expansion? Borrowing isn’t always bad, mind you; it can address urgent needs in the economy and fund long-lasting projects. However, how it’s managed is crucial. Unfortunately, in Nigeria, supplementary budgets have often been one-sided—focusing solely on government expenditure without expanding revenue to match it—a significant gap, indeed.
This approach can communicate misleading information about the real national budget figures to the public, affect policy-makers’ decisions, and increase the debt service burden on the economy. This may further impact the allocation to key sectors such as education, health, and agriculture, which are vital for the vulnerable population. Lookin.