Barring any unforeseen circumstances, President Muhammadu Buhari is expected to present the 2020 budget proposals to the joint sitting of the National Assembly next Tuesday in Abuja.
President of the Senate, Dr Ahmad Ibrahim Lawan dropped the hint yesterday after passage of the 2020 – 2022 Medium Term Expenditure Framework, MTEF and Fiscal Strategy Paper, FSP forwarded to the legislature by President Buhari last week Wednesday.
Also, the chairman, Senate Committee on Media and Public Affairs, Senator Adedayo Adeyeye, APC Ekiti South, re-echoed the planned budget presentation by the President during media briefing after the plenary.
“With the passage of MTEF/FSP documents by both chambers of the National Assembly, the needful has indeed be done for presentation of the 2020 budget by the President next week, which the President of the Senate specifically stated that it will be on Tuesday , October 8, 2019”, Adeyeye said.
But in passing the MTEF/FSP documents, both chambers of the National Assembly made critical reviews of the earlier proposals made by the President one of which was the entire aggregate expenditure for the 2020 budget jerked up from N9.1 2trillion to N10.729trillion.
The increase as explained by Joint Committee on Finance of both chambers, arose from $57 approved as oil price bench mark as against $55 proposed by the executive in the MTEF/ FSP documents.
The joint committee explained further in its reports adopted at both chambers , that part of the N10.729trillion now proposed as aggregate expenditure profile of the 2020 budget , is N548bn added to the N942.6billion expected revenues from Nigeria Customs Service, NCS
According to the report , the revenue target of NCS of N942.6 billion for 2020 budget is now increased to N1.5trillion due to improved performance of NCS within the last 9 months .
The report as recommended and adopted by both chambers, also states that saving on income accruing from the increase of the oil price benchmark amounting to N172billion which represents the federal government portion of the $2 added to the benchmark, be used to pay salaries and emolument of the proposed 30,000 new employees into the military, Police and some para-military agencies.
The committee also recommended and got adopted, N1.5trillion as the amount for new borrowing as against N1.70trillion proposed by the executive in the MTEF/FSP documents.
The N200billion reduction, according to it , is sourced from the increase of revenue target of the Nigeria Custom Service.
Also reduced, is the budget deficit from N1.7trillion to N1.5trillion with attendant increase of the total capital available to MDAs by N357billion from N1.01trillion to N1.367trillion.
However, most of the other underlining assumptions proposed for the 2020 budget by the executive as contained in the MTEF document were retained.
The assumptions are 2.18 million barrel oil production per day exchange rate of N305 to a US dollar, GDP growth rate 2.93%, Inflation growth rate of 10.81% etc.
Other highlights are recurrent expenditure component of N4.84trillion, capital expenditure of N1.87 trillion, debt service of N2.45trillion etc .
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