PRESIDENT Muhammadu Buhari has submitted to the Senate the 2021-2023 Medium Term Expenditure Frame Work, MTEF, and Fiscal Strategy Paper, FSP, for scrutiny and subsequent approval.
President Buhari’s letter was read yesterday by the President of the Senate, Senator Ahmad Lawan
Buhari’s letter read: “It is with pleasure that I forward the 2021/2023 MTEF/FSP for the kind consideration and approval of this distinguish Senate.
“Let me cease this opportunity to express my deep gratitude for the cooperation and support of the distinguished members of the senate in our collective efforts to sustain the restoration of the January to December financial year.
“In line with our commitment, we have worked very hard to archive an earlier submissions of the MTEF/FSP .
“This is to allow the National Assembly to have time to perform its important constitutional duty of reviewing the frame work.
“I herewith forward the 2021-2023 MTEL/FSP as the 2021 budget of the Federal Government will be prepared based on the parameters and fiscal assumptions of the approved 2021-2023 MTEL/FSP.
“I seek the cooperation of the National Assembly for expeditious Legislative action on the submission.”
Meanwhile in the document, the federal government has proposed the sum of N12.66trillion as aggregate expenditure for 2021 on a deficit of N5.16trillion to be financed by total loan packages of N4.28trillion .
The proposals, as contained in the 2021- 2023 MTEF) and FSP, targets N481.41billion as statutory transfers , N5.75trillion as recurrent expenditure, N3.33trillion for capital expenditure and N3.12 trillion for debt servicing .“According to the documents, critical parameters and assumptions upon which the proposals are based as contained in the documents acknowledged by the President of the Senate , Ahmad Lawan , are $40 as oil price benchmark, 1.86million barrels as oil production per day , N360 to US dollar as exchange rate etc.
Also included are N500billion intervention fund against COVID-19 pandemic , N52billion for Public Works Programme , N32.46billion for Social Intervention Programme , N5billion as bail out for the Aviation sector, N60billion for maintenance of roads through direct labour across the six geo- political zones etc.
In the proposal, aside from the N4.28trillion, the FG, as proposed in the documents, targets the sums of N205.15billion from privatization proceeds to fund the budget.
