Budget 2007(2)
October 26th, 2006 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
Ogbuotobo Chuks
Continued from Budget 2007 (1)
The budget for 2007 has been hinged on the possible price of oil in the international market at a price $40 per barrel. This is compared to $35 in 2006. Estimated crude oil production is also put at 2.5 million barrels per day as compared to 2.4 million barrels per day in 2006.
Furthermore, government estimates the country’s GDP growth rate of 10 percent as against 7 percent for 2006, with an inflation rate of 9.0 percent as against 10.0 percent in 2006. the dollar equivalent exchange rate will stand at N126 to $1 as against N129 to $1 in 2006.
Finance minister, Mrs Nenadi Usman further said that the assumptions were realistic and achievable. She said the cost of servicing domestic public debt is estimated at N265 billion. She also said that the single digit inflation of 9.0 percent was realistic, while also stating that that a significant portion of Nigeria’s inflation was usually due to rising food prices.
She stated that the estimation from the agricultural sector indicates that 2007 will be a good harvest year.
This is the last budget in the life of the present administration, a fact that the national assembly must put into consideration when deliberating on it. The lawmakers should therefore endeavor to go through it with particular attention to ensure that the incoming administration will not find it difficult to carry it through for the remaining part of 2007.
(No Ratings Yet)
Loading ...