Business Drive

The Chief Executive Officer of Economic Associates, Dr Ayo Teriba, has faulted the decision of the federal government to borrow to fund its recurrent expenditure, stressing that such a decision flagrantly violates Section 41 of the Fiscal Responsibility Act, 2007. He urged the federal government to adopt a cost-effective approach to generating revenues by issuing asset-backed debt and not revenue-based debt. He argued that not only that borrowing to pay salaries or generally for recurrent expenditure is against the law, but it is also not sustainable as it may lead to a debt trap which could quickly spiral out of control.