SAN FRANCISCO, May 27, (THEWILL) – The Central Bank of Nigeria, CBN, disclosed on Thursday that the delayed passage of the 2016 budget will make it difficult for the signed Appropriation Bill to be fully implemented.
Making a presentation during the first edition of the Nigerian Economic Stakeholders Summit in Abuja, the CBN Director of Monetary Policy Department, Mr Moses Tule stated that without effective co-ordination of both fiscal and monetary policies, it would be difficult for the country to return to the path of growth.
He urged the federal government to avoid the mistake of 2016 budget adding that with it would be difficult to ensure its full implementation of the budget in which implementation is starting about five months into the year.
The Director pointed out that even if the government was to release the N6 trillion it budgeted to spend in the 2016 fiscal year immediately, the economy does not have the capacity to absorb such huge spending over a seven-month period.
Tule reasoned that since the fund was planned to be utilised over a 12 months period, any effort to release it within seven months could only worsen the level of inflation in the country.
He added that this could only be effectively managed through fiscal and monetary coordination.
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