The upper chamber of the National Assembly has passed the 2021-2023 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
In the approved legislation, the lawmakers pegged crude oil price at $40 per barrel and exchange rate at N379 to $1.
The passage of the bill followed the hearing of a harmonized conference report of the Joint Committee of the Senate and House of Representatives.
The Chairman of the Committee on Finance, Senator Olamilekan Solomon Adeola (APC – Lagos West), stated that the Conference Report of the Joint Committee was a harmonized position of the two chambers pon examination of the differences contained in the 2021-2023 MTEF/FSP document.
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Adeola stated that the joint committee, after deliberations, recommended that the country’s crude oil output be fixed at 1.86mbpd, while the price is pegged at $40 per barrel. He also said that the committee forecasted a GDP growth rate of 3 percent, an inflation growth rate at 11.95 percent while the federal government is expected to retain N7.99 trillion of the revenue from the Federation Account.
In addition, the total proposed expenditure was pegged at N13.58 trillion; fiscal deficit at N5.60 trillion; new borrowings N4.28 trillion (including foreign and domestic borrowing); statutory transfers at N484.4 billion; debt service N3.12 trillion; sinking fund N220 billion; pension, gratuities, and retirees benefits N520.6 billion; total FGN expenditure N13.58 trillion; and total recurrent (non-debt) N5.66 trillion.
Personnel costs for Ministries, Departments, and Agencies of government (MDAs) were put at N3.05 trillion; capital expenditure (exclusive of transfers) at N3.58 trillion; special intervention (recurrent) N350 billion and special intervention (capital) N20 billion.
