The Senate has passed the 2021-2023 Medium Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP) while pegging the crude oil benchmark at $40 per barrel for the 2021 budget.
This was done after a harmonised report of the Joint Finance Committee of the Senate and House of Representatives was considered.
Chairman of the Senate Committee, Senator Olamilekan Solomon Adeola, said after due deliberations, the joint committee also recommended that daily crude oil production should be 1.86 million barrels per day (mbpd); exchange rate at N379 to $1; Gross Domestic Product (GDP) rate at three per cent; inflation growth rate at 11.95%; and the Federal Government retained revenue at N7.99 trillion.
The proposed expenditure was pegged at N13.58trn while the fiscal deficit is N5.60trn. The new borrowing is N4.28trn (both foreign and domestic), statutory transfers at N484.4 billion, debt service is N3.12trn, and sinking fund is N220bn.
Other indices considered include pension, gratuities and retirees’ benefits, N520.6bn; total expenditure, N13.58trn; and total recurrent (non-debt) N5.66trn.
The personnel cost for FG’s Ministries, Departments and Agencies (MDAs) is N3.05trn; capital expenditure (excluding transfers) is N3.58trn; special intervention (recurrent) N350bn; and special intervention (capital) is N20bn.
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