We borrowed our way out of two recessions, says finance minister
The Minister of Finance, Budget and National Planning, Zainab Ahmed has defended the incessant borrowings by the Federal Government, noting that it was the only way to lift the country out of recession.
Ahmed made this claim today during the Public Presentation and Breakdown of the 2022 Appropriation Bill in Abuja.
The Minister stated that “Having witnessed two consecutive recessions, we have had to spend our way out of the recession which contributed significantly to the growth of our public debts.
“It is unlikely that our recovery from these recessions would have been as fast without the sustained government expenditure funded partly by debt.”
She further claimed that the borrowings had helped the government in providing infrastructure to boost the economy.
“Borrowings are essential to enable us to deploy necessary capital expenditure and invest in human capital development.
“To compound matters, the country has technically been at war, with the pervasive security challenges across the nation,” the minister added.
“This has necessitated massive expenditures on security equipment and operations, contributing to the fiscal deficit; Defence and Security sector accounts for 22% of the 2022 budget!,” Ahmed said.