FG BLAMES BUDGET GAPS ON CONFLICTING ECONOMIC FORECASTS

The Federal Government has attributed some of Nigeria’s budget shortfalls to conflicting economic projections used by government agencies when preparing fiscal plans.

The government said differences in forecasts for crude oil prices and production, inflation, exchange rates and non-oil revenues had contributed to gaps between budget expectations and actual economic outcomes.

The disclosure followed a meeting of the Economic Management Team in Abuja, where officials approved the establishment of an inter-agency committee to harmonise key economic assumptions used for budgeting and planning.

According to the government, the committee will develop a common set of projections for major economic indicators and address inconsistencies in the way data is reported and communicated to investors, development partners and the public.

The Minister of Finance and Coordinating Minister of the Economy said the move would strengthen coordination between fiscal and monetary authorities and make government planning more credible.

The Economic Management Team will also review macroeconomic performance monthly, monitor fiscal and monetary policies and assess the Federal Government’s financing needs.

The government said the harmonisation of economic forecasts would help reduce discrepancies between budget projections and actual outcomes while improving the reliability of official economic data.