Budget: Economic Growth Rests On Borrowing At This Time, Sen Kalu Tells Abaribe, Others

Chief Whip of the Senate, Senator Orji Uzor Kalu has said that President Mohammadu Buhari’s plan to borrow money to fund the economy is in line with economic realities in the country.

The former Abia state governor made the call in response to his counterparts in the opposition party, PDP’ claim that resort to more borrowing could endanger the country.

“Mr. President’s 2021 budget is in line with the challenges currently facing the nation. At this time our nation is regressing into recession due to the COVID-19 pandemic you will have no option than to borrow.

“Any economy where you have serious challenges you have to resort to borrowing but the President’s borrowing is being channelled to Capital projects that are ongoing in the North, South, East and West geopolitical zones of the nation,” Kalu said.

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Eyinaya Abaribe, also a senator from Abia like Kalu had queried plans by government to embark on another borrowing spree.

But speaking on the matter Kalu asked, “How do you manage an economy during recession? What to do is to borrow and finance infrastructure like road projects, the 2nd Niger Bridge.

“I urge the leader of the opposition (Abaribe) to appreciate what President Buhari is doing. For example in my constituency, Mr. President has just earmarked Twelve Billion Naira to construct the Umuahia-Arochukwu Road.

“Do we expect him to print money to construct the road? Of course, he has to borrow. So I want my colleague Abaribe to appreciate what this administration is doing, instead of saying that there is nothing new in the budget.

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“There is a creation of 774,000 special public works which has been inserted into this budget, those are the kind of programmes that you need to cushion the effects of a distressed economy and you cannot cushion an economy without borrowing.

Senator Abaribe is an economist and I want him to counter my submission, I will give him the right to reply because we are not going to print special currency from the Central Bank, we have to result to borrowing,” Kalu said.

What are your thoughts?

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