OPINION: The Effects Of The Use Of Taxation Instead Of Borrowing To Augment 2017 Budget Deficit On All Of Us

As Written By Anayo M. Nwosu

The Nigeria's Finance Minister won my esteemed admiration yesterday when she unashamedly declared that Nigeria would no longer borrow to spend on budgeted projects, paying salaries and running government.

Anayo Nwosu

In her own words, the revenues generated could barely pay salaries!

Without clearly saying it, the minister has just acknowledged that the 2017 budget cannot be operated as approved since the N2.35 trillion deficit (i.e. amount needed to be borrowed) could not be accessed or if borrowed could not be repaid by existing revenues.

The minister also said that the current revenues bases of the federal government were not reliable and as the government could no longer generate the required funds it needed to spend.

I was baffled why the minister was not bold enough to announce austerity measures which should include cutting the size of government and the salaries of political office holders.

Recall that all the personal aides of our ailing President Buhari still collect their salaries and emoluments even when the person they are supposed to be aiding is being aided abroad.

Members of our National Assembly still collect so much for working from Tuesday-Thursday in a given week and for taking long holidays.

Recall that this government has also undertaken some programs like N-Power and other recruitments into ministries departments and agencies which definitely has increased its wage bills.

Government has not taken steps to sack dead woods or reduce government structures to contain costs. They seem to be praying about it.

The financing of projects under the 2017 Budgets would now be on "wait till we get enough revenues to cash-back the project" basis.

This could be so annoying for ministers who want to impress or make money.

The revenues from oil, the main source of Nigeria's earnings, can only rise if the oil prices rise or OPEC approved quota increases.

The fact that either of increases in price and volume happening is not in the control of Nigeria, government has decided to use taxation to augment its revenues.

But how well are businesses in Nigeria fared to pay size taxes?

Only about 3m out of over 180 Nigerians pay taxes.

That's where the wahala dey!

Right from the colonial days, Africans including Nigerians viewed taxation as punitive and the fact that government of Nigeria is owned by the elites, the people pay taxes by compulsion.

Please note that companies pay income tax once in a year and usually around March.

The painful part is that most companies in Nigeria engage criminal accounting firms to help them declare losses in a bid to pay nothing or peanuts as taxes.

Can sacked workers pay PAYE or personal income tax?

Many workers have lost their jobs due mainly to the effects of war against corruption approach and economic recession.

Where are those that will pay the badly needed taxes?

Are they not the same people clamouring for secession or restructuring of the country to the deaf ears of the tax collector?

When shall government stop postponing the doomsday?

The APC led government should abandon their bogus campaign promises and restructure the economic architecture of Nigeria for better governance and for prosperity.

Nigerians should also ignore PDP or any other party preaching salvation. They are all dishonest.

Nigerians shall expect increase in petroleum pump prices and VAT in days to come.

But wait a minute!

The regions that account for the least contribution to these increased taxations or alternative revenues drive shall continue to benefit more than the main contributors because the contributed 97% of votes that brought this government to power.

Therefore, we are still back to agitations on tax matters.

And that's why we shall remain where we are!