President Muhammadu Buhari yesterday presented the 2018-2020 medium term expenditure framework (MTEF) and the fiscal strategy paper (FSP) to the House of Representatives as part of preparations for the presentation of the 2018 budget.
Speaker of the House of Representatives, Hon. Yakubu Dogara, read a letter dated October 9, 2017, conveying the MTEF/FSP to the House.
Although the Speaker read the letter without giving details, Leadership reports that in the MTEF, the federal government projected a budget of N7.9 trillion for 2018, about N500 billion more than the 2017 N7.44 trillion appropriation.
It was also learnt the federal government has proposed $45 per barrel of oil and a 2.3 million barrel per day (mbpd) oil production quota for the 2018 budget.
The executive is said to have equally proposed an exchange rate of N305/$1, with 12.42 inflation rates, a 4.8 per cent GDP growth rate and nominal GDP of N133.97 trillion, as well as N81.60 trillion nominal consumption.
It is also expected that N2.4 trillion would be spent on capital projects implementation as against N2.17 trillion approved for 2017.
The executive had assured that it would submit the 2018 budget proposal before the end of October to allow the National Assembly ample time to pass it before the end of the year.
The letter, which was signed by President Buhari reads in part: “I am pleased to submit the 2018-2020 medium term expenditure framework (MTEF) and fiscal strategy paper (FSP) to the House of Representatives. Let me use this opportunity to express my gratitude for the enduring partnership between the legislative and executive arms of government.
“Pursuant to provisions of the Fiscal Responsibility Act, 2007, the preparation towards the submission of the 2018 budget to the National Assembly is progressing well.
“The MTEF and FSP were prepared against the backdrop of a generally adverse global economic uncertainty, as well as fiscal challenges and recovery in the domestic economy to ensure that planned spending is set at prudent and sustainable levels and is consistent with government’s overall developmental objectives and inclusive growth.
“I hereby forward the 2018-2020 MTEF and FSP to the House of Representatives and trust that it would be kindly considered and approved expeditiously in order to bring the 2018 FGN budget preparation process to timely closure”.
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