The Senate on Wednesday approved the 2022 – 2024 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
The lawmakers maintained the exchange rate of N410/$ proposed by the executive for 2022 to 2024.
They also retained the crude oil benchmark price of $57 per barrel as proposed by President Muhammadu Buhari.
The joint committee on finance, chaired by Senator Adeola Olamilekan, has presented a report on the outcome of its examination of the MTEF amd FSP.
The senate also approved the daily oil production of 1.88 million barrels per day (million barrels per day), 2.23 million barrel pd, and 2.22 million barrels per day for 2022, 2023, and 2024, respectively.
They retained federal government projected revenue of N8.36 trillion; proposed expenditure of N13.98 trillion and fiscal deficit of N5.62 trillion..
The projected Gross Domestic Product (GDP) growth rate of 4.20 per cent and inflation rate of 13 percent were also approved.
President Buhari had in July, sent a letter to the National Assembly detailing proposals for a budget deficit, crude oil benchmark price, exchange rate, among others.
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Olamilekan, the Chairman of the joint committee on finance, who presented the report, said the Committee also recommended that the projected new borrowings of N4.89 trillion and USD$3.5 billion International Monetary Fund (IMF) loan at the rate of 0.01 percent to 0.02 percent be approved, subject to the provision of details of the borrowing plan to the National Assembly.
The Senate also approved the following sundry parameters in the 2022-2024 MTEF/FSP: Statutory transfers, totaling, N613.4 billion; Debt Service estimate of N3.12 trillion; Sinking Fund to the tune of N292 billion; Pension, Gratuities & Retirees Benefits of N567 billion.
Aggregate FGN Expenditure of N13.98 trillion; made up of Total Recurrent (Non-debt) of N6.21 trillion; Personnel Costs (MDAs) of N3.47 trillion; Capital expenditure (exclusive of Transfers) N3.26 trillion; Special Intervention (Recurrent) amounting to N350 billion; and Special intervention (Capital) of N10billion.
Salaries and Wages Commission should review the salary structure of all the MDAs, in other to come up with a new salary structure for the MDAs that will reflect the true financial position of the Agencies.
There should be a continuous review of the Fiscal Responsibility Act to ensure that all revenues are remitted to the CRF as at when due, in order to curtail frivolous deductions and diversion of funds by the MDAs.
