The proposed 2025 budget by President Bola Tinubu Sunday came under attack by former Vice President Atiku Abubakar, who said the it cannot address the country’s current structural and economic challenges.
Atiku who was the presidential candidate of the Peoples Democratic Party (PDP) in the 2023 election said this in a statement sighted by Blueprint corresponden.
Wazirin Adamawa noted that with a revenue forecast of N35 trillion and a deficit exceeding N13 trillion, the N48 trillion budget represents a continuation of “business-as-usual fiscal practices” by the APC-led administration.
The 2025 budget this medium report proposes over N13 trillion in new borrowings, including N9 trillion in direct borrowing and N4 trillion in project-specific loans.
While justifying his arguments, Atiku said it stemmed from the fact that the current approach mirrors previous administrations and exacerbates public debt, increasing risks related to interest payments and foreign exchange exposure.
Furthermore, he highlighted weak budgetary foundations, high debt servicing costs, bloated recurrent expenditure, insufficient capital investment and regressive tax policies and several key issues with the budget.
He also criticised the planned VAT increase from 7.5% to 10%, describing it as a regressive measure that will worsen the cost-of-living crisis and stifle economic growth.
He added: “The administration’s decision to increase the VAT rate from 7.5% to 10% is a retrogressive measure that will exacerbate the cost-of-living crisis and impede economic growth.”
