Kalu Aja is a fiscal conservative, small government supporter and a Financial Planner in his day job.
“Don’t tell me what you value, show me your budget, and I’ll tell you what you value.”
The quote above was by Vice President Joe Biden, its succinct. If I see what you spend money on, I see what you value.
It has been difficult to do a proper analysis of the 2016 budget because the breakdown was unavailable, however the budget breakdown has been released, and it’s a very disappointing, (I am being polite).
The budget sees a huge spend on capital expenses, this is positive and a reflator of the economy if properly done.
Structurally the budget is a budget of debt with a full ₦1.36t to be spent on debt service, the entire non-oil revenues will be spent on debt service alone. we are borrowing almost ₦420b to pay salaries. However, salaries must be paid, the armed forces, police and teachers must be paid, in fact some may argue that government spending is a necessary stimulus on the face of a slow economy, I concede that point, but in Gods green heaven why is Nigeria spending ₦795m ie $3m to update a website for the Ministry of Solid Minerals?! (more…)