By Olugbenga Salami
President Muhammadu Buhari has forwarded the 2019-2021 Medium Term Expenditure Framework, MTEF and Fiscal Strategy Paper, FSP to the leadership of the National Assembly for approval .
This is coming ahead of presentation of the 2019 budget proposals to the National Assembly, ROYAL NEWS has learnt .
The President of the Senate, Dr, Bukola Saraki read the letter containing the fiscal document on the floor of the Senate, just as it was also read in the House of Representatives by the Speaker, Hon. Yakubu Dogara.
The Federal Executive Council. FEC had on Wednesday October 24, 2018, in Abuja, approved the 2019 – 2021 MTEF, which consists of N8.7 trillion budget proposal for the 2019 fiscal year.
The MTEF and FSP provide the framework for the 2019 budget which members of the National Assembly are expected to debate and approve before the presentation of the 2019 budget to the joint session of the nation’s apex assembly by the President.
In a letter addressed to the President of the Senate, President Buhari appealed to the lawmaker to expeditiously consider and approval of the document.
Minister of Budget and National Planning, Udoma Udo Udoma and the Director-General of the Budget Office, Ben Akabueze had publicly unveiled a draft of the 2019-2021 MTEF and FSP last week.
They explained that the federal government would reduce the 2019 budget from N9.1 trillion this year to N8.7 trillion in 2019.
The key parameters of the 2019 budget are premised on an oil production volume of 2.3 million barrels per day at $60 per barrel, exchange rate of N305 per dollar, inflation rate of 9.98% and a nominal GDP rate of 3.0%.
Also while N6.9 trillion has been projected as available to fund the budget, debt service for the same fiscal year is estimated at N2.1 trillion.
Other key highlights for the 2019 budget from the MTEF and FSP document include: Share of oil revenue N3.6trillion, independent revenue N624 billion, statutory transfer N506 billion, sinking fund N220 billion, recurrent (non-debt) N4.7 trillion, and aggregate capital expenditures N2.7trillion, among others.