Amidst public outcry over the estimated N20 trillion borrowing by the Federal Government within the past one year, the Presidential Fiscal Policy and Tax Reforms Committee, PFPTRC, has recommended to the Federal Government the need to avoid excessive debt that may burden future generations.
The Committee Chairman, Taiwo Oyedele, disclosed this at a workshop held in Lagos to sensitize stakeholders of its inputs on the proposed 2024 tax reforms, stressing the need for prudent debt management.
While commenting on the Draft National Fiscal Policy 2024, he said the Committee recommended: "The need for a design framework for assessing the government's ability to meet debt obligations without compromising essential public services or creating undue financial strain; Regularly assess the impact of borrowed funds, adjusting strategies if necessary to maximise positive outcomes and minimise risks.
"On Infrastructure and Productivity: Borrow only as a last resort and for specific purposes that contribute to long-term economic growth or to address critical needs. Prioritise borrowing for projects that enhance economic productivity and contribute to long-term growth, such as critical infrastructure and development initiatives".
Other Committee's recommendations on borrowing principles include Sustainability, Risk Management, Transparency and Accountability, Coordination and Collaboration.
