Some economists have lauded the 2020 budget proposal presented by Governor Ben Ayade of Cross River State, saying some of its components have the tendency to stimulate growth.
On Monday, November 21, Governor Ayade announced that from 2020, workers earning less than N100,000 and owners of small scale businesses are exempted from payment of taxes.
An economist and lecturer in the Department of Economics, University of Calabar, Peter Ubi, said the budget is primed to stimulate growth.
Ubi lauded the governor on the tax exemption, adding that the development will not only enhance investment but will also become a catalyst for sustainable economic development in the state.
He further commended Ayade for allocating N911 billion representing 82.8 percent for capital expenditure, saying if implemented, the economy will turnaround for good.
Ubi said for government’s industrialisation policy to thrive, small and medium enterprises, which he described as a bedrock for any economic development, must have a framework to thrive as well.
Corroborating Ubi’s position, another economist, Saviour Mba said: “If Governor Ayade can implement this budget, investment will increase, output will increase and ultimately, welfare will be maximised as income is redistributed between the rich and the poor because the abolition of tax for those whose income is less than N100,000 will lead to income redistribution and may reduce income inequality in the long run.