The Federal Executive Council (FEC) on Wednesday approved a Medium Term Expenditure Framework (MTEF) Fiscal Strategy Paper of N8.73 trillion for 2019-2021, revealing a deficit of N400 billion when compared to that of 2018 which was pegged at N9.12 trillion.
In the proposal to be forwarded to the National Assembly anytime soon, key highlights and assumptions as prepared by the Ministry of Budget and National Planning revealed oil price benchmark pegged at $60, oil production of 2.3 million barrels per day, exchange rate of N305 to US dollar, and a Gross Domestic Product (GDP) growth rate of 3.01 percent.
Udo Udoma, Minister of Budget and National Planning, gave the confirmation while briefing State House correspondents on some of their resolutions.
He said: “Today, the Federal Executive Council (FEC) approved the 2019 2021 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) and it was approved and it will be submitted to the National Assembly for their consideration.
“The MTEF FSP that was approved today is designed to translate the strategic development objectives of the Economic Recovery and Growth Plan (ERGP) into a realistic and implementable budget framework for the medium term.
“As you know, relevant inputs from engagements with stakeholders the last of such engagements was just last week, the inputs from stakeholders were part of the document that was submitted.
“The key highlights are the following assumptions which are being proposed for the 2019 budget, oil price benchmark of $60, oil production of 2.3 million barrels per day, exchange rate of N305 per US dollar and the GDP growth rate of 3.01 percent.
“In addition, the MTEF projects that a budget size in 2019 of N8.73 trillion, which is about N400 billion less than the N9.12 trillion for 2018.”
Further analysis of the 2018 budget implementation as at end of September indicated a total release of N460 billion for capital projects, according to the Minister of Finance, Zanaib Ahmed.
In addition, Ahmed gave indications that the budget implementation rate could be placed at 52 percent, while noting that the Federal Government had settled for a fresh $1.5 million loan from the African Development Bank (AfDB) to fund the Abidjan-Lagos corridor project involving five African countries.
