The Federal Government must be prudent to get the economy back on track, the Nigeria Employers’ Consultative Association (NECA) has said. In an interview with The Nation, its Director-General, Mr Segun Oshinowo, said much still needed to be done to rescue the economy from recession. He said: “To get the economy back on track, the government must first accept the basic principle and imperative of prudent spending as a way out of recession.
“Such spending should target key social and physical infrastructural development; the settlement of the huge domestic debt and institution of an outcome – based and cash- backed budgetary system for the MDAs.’’
He stressed the need for the government to complement its monetary policy with appropriate fiscal policy such as the abrogation of arbitrary tax waivers/exemptions, deliberate increase of fiscal savings into the Sovereign Wealth Fund, improved tax collection with emphasis on widening the tax net as against introduction of new taxes or increase in value added tax (VAT), which could further reduce disposable income, slow down growth and lead to disincentive for investment. Read more