THE Peoples Democratic Party (PDP) said yesterday that the 2016 federal budget presented by President Muhammadu Buhari was meant to offset huge campaign debt incurred by the ruling party. The party claimed the Buhari administration plans to borrow N5 billion daily to finance the N6.08 trillion budget.

National Publicity Secretary, Olisa Metuh, made this allegation at an interactive session with newsmen in Abuja.

He also claimed that there was no provision for economic production and a clear repayment plan for the borrowing enunciated inthebudget.

Metuh said: “Some people may be wondering why we raised the alarm about the budget. The reason is simple. When we analysed the budget, we discovered it was a misshapen attempt at a Keynesian economics of applying deficit spending to stimulate growth even when studies have proven that GDP growth rates decrease by over 50% when debt goes from low or moderate to high. But then we know the borrowing here is to pay huge campaign debt and fund a political war chest.

“By every standard, this budget is a booby trap against the nation. When you break down the proposed N1.84 trillion borrowing, you discover that it amounts to borrowing N5 billion every day for the 366 days in 2016. The questions are: for what specific projects are they borrowing N5 billion per day and how do they intend to pay back?

“The President should explain to Nigerians how they intend to pay back the loan. Is it by continuous borrowing to service the interests, and does he intend to accumulate colossal debt for future generations of Nigerians?”, Metuh said.

The party warned against deficit budget in a mono-cultural economy mainly driven by earnings from crude oil sales.

“The truth is that this administration cannot justify this proposal. There is no known economy in the world where you can justify borrowing N1.84 trillion without specific projects and precise repayment outline. This is worse still in an oil-driven, mono-economy at a time crude oil is selling at $30 per barrel and is speculated to go down to about $20 or even lower in the next one year.

“The idea can only come when you diversify the economy and boost production capacity in manufacturing and other critical sectors, a direction, which the budget clearly failed to provide.

“From all indicators, the borrowing will be negative. They are driving us to be like Greece, and to plunge us into unnecessary debt. When the PDP took office in 1999, we achieved the cancellation of inherited debts. This administration, in seeking to accumulate debts, should know that there is no possibility that any country in the world will give us debt cancellation anymore.

“More importantly, we are really worried about negative economic policies of the present administration and the copying of strategies that failed in other economies. Recall that we had earlier alerted on the negative consequences of the retrogressive foreign exchange controls wherein this government is making it impossible for honest Nigerians to engage in free trade and regulate their personal activities.

“There seems to be the erroneous belief that the controls will create foreign exchange stability or strengthen the Naira by limiting foreign currency outflows. This policy had badly affected other countries in the recent past; including Argentina, whose new government had to reverse the policy to save their economy. Why then are we copying a policy that failed in other countries?”, Metuh queried.