President Muhammadu Buhari has formally sought that the increase in the 2022 budget deficit be financed through borrowing from the domestic market.
In a letter sent to the House of Representatives and read by the speaker, Femi Gbajabiamila, President Buhari said the total budget deficit is projected to increase by N965.42 billion to N7.35 trillion, representing 3.99% of GDP.
He said the incremental deficit will be financed by new borrowings from the domestic market. The President also requested the review of the 2022 Medium-Term Expenditure Framework (MTEF), upon which the budget was hinged.
“As you are aware, Mr. Speaker, the new development both in the global economy as well as the domestic economy has necessitated the revision of the 2022 fiscal framework on which the 2022 budget was based. The total budget deficit is projected to increase from N965.42 billion to N7.35 trillion, representing 3.99 percent of the GDP.”
The President’s request has been sent to the house committee on finance for further legislative action.