Budget deficits are not always a negative thing, according to Bola Ahmed Tinubu, the All Progressives Party’s (APC) presidential candidate.
He added that the real question is whether spending on the budget deficit is productive.
In a meeting with business executives on Friday in Lagos State, Tinubu made this disclosure.
“I don’t subscribe to the popular belief that the national government’s fiscal imbalance is intrinsically bad,” he declared. All governments have budget deficits; it’s just a fact of modern government, especially in this time of scarce currency. Both the richest and poorest countries have fiscal deficits.
“A fiscal deficit need not be a bad thing. Take a look at the low inflation and huge government borrowing in Japan as an example. The underlying question is whether or not deficit spending is beneficial. unproductive deficits underpinned by excessive foreign currency borrowing
Tinubu’s remarks came in the wake of criticism directed at President Muhammadu Buhari for enacting the 2023 budget with a 10.73 trillion deficit.
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