Nigeria 2016 Budget Proposal: A Critique

Abstract

The objective of this paperis to critique some grey areas of concern in the 2016 budget estimate. The papercritically analyses the breakdown of the budget with the aim of identifying aspectsthat require huge attention and adjustment.2016 budget is the highest budget presentedso far by the Federal government and first ever non-oil budget. The paper revealsthat for the first time, capital expenditure constitutes 30 per cent of the budgetwhile education was allocated 369.9 billion against defense with 294.5 billion naira.However, issues were raised on the level of 2.2trillion naira budget deficit whichwould be financed with a borrowed fund of 1.84 trillion naira. The paper also examinessome allocations that seem to constitute an issue to the budget. This paper reliedon secondary sources and anchored on zero based budgeting system theory as a frameworkof analysis. It therefore concludes that the budget looks too luxurious consideringthe revenue projection of 3.86 trillion naira only.Thus; the paper recommends thatthe administration must invest in key infrastructural development areas while iturgently diversifies the economy, the National Assembly in conjunction with therelevant committees on finance and budgeting comprising relevant stakeholders toreview the budget proposal in an attempt to correct some technical issues surroundingthe budget proposal among others.Keywords: Budget,Revenue, Expenditure and Deficit