President Ibrahim Babangida will make known to Nigerians today the basics of the Federal Government’s much expected “humane” budget for the next 12 months.
The third so far made by the current regime, the budget is expected to be based on the two-year structural adjustment programme, SAP, which will end this June.
Economic experts are predicting that the budget which will continue on the principle of SAP will this time around be reflationary.
It will was gathered that a loose monetary policy will be adopted in order to stimulate economic activities while maintaining the basic direction of the government’s economic reconstruction.
Already the Central Bank of Nigeria, CBN, giving an insight into the budget has lowered its rediscount rate 15 to 12.75 per cent in order to reflate the economy and encourage private investment.
With the expected stability in the prices of oil in the international oil market the budget may be balanced one as government’s revenue is expected to rise during the year.
The new year budge is likely to be based on $15 per barrel of oil ini the world market which will be $2 (N8) higher than the $13 in the previous budget.
Greater attention may also be given to the rural and agricultural development directorates in the government’s renewed bid to consolidate the gains made in the preceding year.
Specific emphasis is also expected to be placed on the novel programme of rural banking as different from the traditional banking system.
In the line with the government effort to ensure greater control on the currency in circulation in the economy the over N5 billion now of the banking system is expected to be recouped through the rural banking system.
