OrderPaperToday – The House of Representatives has passed the Medium Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP) for the 2021-2023 rolling plan.
The MTEF contains the framework which will be used for developing the budget.
The green chamber approved the following parameters for the 2021 budget:
*Daily crude oil production at 1.86mbpd
*Oil benchmark at USD 40 per barrel
*Exchange rate of N379 to US Dollar.
*Projected growth rate pegged at 3.00%
*Inflation expected to be at 11.95%.
With all these parameters, the 2021 expenditure expected for the 2021 budget as approved by the House is N13.08trillion.
The rolling plan was approved following the consideration of the reports of the committees on appropration, finance and national planning on Wednesday by the committee of Supply.
According to the report, the 2021 budget will run a deficit of N5.20trillion and N4.28trillion will be borrowed from local and foreign sources.
Also, N3.12trillion will be spent on debt servicing, N5.67 trillion on recurrent expenditure and N484.49 billion as statutory transfer.
Speaking on the report, the Chairman of the House Committee on Finance, James Faleke (APC, Lagos) indicted revenue generating agencies of exploiting lacuna in existing laws to spend money at the detriment of Nigeria.
He noted that no reason why Nigeria should be borrowing to finance the budget.
The committee therefore recommended that “the Committees on Finance and National Planning and Economic Development in partnership with the Ministry of Finance, Budget and National Planning and the Auditor General of the Federation to conduct a detailed analysis of all Ministries Departments and Agencies (MDAs) by the Federal Government of Nigeria Budget to identify more Agencies that need to be taken off the budget wholly or partially and those that need to be retained, to further reduce the deficit burden of the Federal budget and free up more resources for other critical projects.”
The recommendations were adopted by the House, and the Speaker announced that the President, Muhammadu Buhari will present the 2021 budget next week.
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