Managing And Balancing Budget Deficit
One very disturbing phenomenon plaguing our nation nowadays is the problem of incurring deficit after mapping out strategies on monetary income and expenditure through budgetary processes. Both the state and federal governments are guilty of this trend which has been a source of anxiety for some concerned citizens of the country. Such people view that there are lots they can do to avoid this unwholesome circumstances.
To avoid budget deficit and to restore healthy growth this fiscal year, there is need to adopt certain policy measures, the first of which is the prevention of further slippage in the budgetary process. This ought to be done along with effective co-ordination of fiscal, monetary and exchange rate policies.
The overhauling of the budgetary procedures need to not be over emphasized, for nowadays, we have our budgets expressed in billions of Naira. The figures are made to be unduly big! There are not only glaring inconsistencies but there is also lack of coherence in the various budgets. Governments must imbibe the discipline to keep within their targets if integrity is to be restored. The idea of spending extra money outside the budgetary provisions should be completely avoided.
In addition, the absence of effective monitoring mechanism in our budgetary processes contributes to weakening of control over the budget execution.
Finally, in order to contain inflation and its attendant pressures on the foreign exchange market especially in the medium-term engagements, the government budget should aim at engaging in fiscal policy that will completely eliminate wastes.