THE SIGNED BUDGET: WHAT IS IN IT FOR ME?

Now that the waiting is over, the question on the lips of many is what is in it for me. How does signing the budget of my country affects my socio-economic welfare? Does it put food on my table? As a salary earner, does it translate to increase in my salary? As a business man, how does it affect my business? These and many more questions are on the lips of many Nigerians.

Budget as an economic blue print revealing the dynamics of the state concerning the raising and spending of government revenue within a given period called a fiscal year is very germane to the socio-economic welfare of the citizenry.

First, budget is used as a tool for planning; and this becomes more understandable when we see planning as a bridge between where we are and where we want to be in the nearest future. In other words, the budget of a country shows the direction of the economy. That is, area the government is interested in pumping or withdrawing money from. So a good investor learn to invest in such sector. Thus, the budget of a country helps corporate bodies to make appropriate policies and decisions. It is therefore not surprising that many companies have refused to make investment because they were waiting for the budget to be signed. For instance, some weeks ago, I was discussing with a banker's friend on behalf of a close person who needs a loan, what my banker's friend said was that the banks are trying to recoup their money now and not giving loan out pending the time the budget is signed.

Through budget, government regulates the economic activities of a nation using it fiscal instrument of taxation and expenditure. In essence, budget determines the worth of the naira in your hand. This is because the budget of a country is used to stimulate economic activities of a country.

Budget in addition helps to serve as a bench mark for measuring organization and sectoral performance. In other words, the budget of a country is used as a tool for measuring the performance of Ministers and the ministries under them. So if you want to know how the Minister of power is performing, look at the budget earmarked for that purpose. Suffice to say, the budget of a country should all things being equal determines whether you have good roads, energy in your homes, or good health facilities; and or have food stuffs at affordable prices. So in the next couple of months, expect the prices of food stuff to come down.

Moreover, the budget can be used as a tool for motivating employee. On one hand, the budget shows the employees including government employees, the number of training earmarked for them from department to department, the allocated allowances in a given year and sometimes the percentage increase in salary. Through all these, employees are better position to serve better. Besides, the signing of budget and subsequent release for spending purpose help to keep the civil servants busy as they now have resources to work with it.

Budget is used for coordination purpose. A nation economy is made up of different parts which must be adequately coordinated to achieve set targets. Thus, the signing of the budget will help to ensure harmonious working of the different sectors of the economy. For instance, when roads are constructed, there will be free movement of goods and people from urban to rural areas and vice versa thereby helping to boost trade and commerce. Some of the goods to be transported are agricultural products, so the budget in this case has helped to link the Ministry of Agriculture with Ministry of Commerce and Trade as well as Ministry of Power, Housing and Infrastructure.

Perhaps, let me be more practical. In this year budget, #200 billion has been earmarked for road construction, how do I benefit from this given the fact that I am not into construction and does not directly work with the government?

The implication is that if this money is judiciously expended. The contractors will go back to sites which means a lot of people who are unemployed today can get work to do leading to increase in the per capita income of you and I. On the other hand, many contractors who perhaps before now are unable to meet their obligations like payment of their house rents, children school fees, among others will now be able to do so. In addition, some will embarked on direct shopping of clothes, cars, jewelries, and other essential needs, so the resources percolates to the landlords, market women and men, school owners and teachers, among others.

Essentially therefore, the signing of the budget is a welcome development and one that will make life better for us all.

Have a great week!