UPDATE: Senate passes 2022-2024 Medium-Term Expenditure Framework (MTEF)

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By Haruna Salami

The Senate on Wednesday passed the 2022-2024 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).  

This was as a result of consideration of its Joint Committee on Finance; National Planning; Foreign & Local Debts; Banking, Insurance and Other Financial Institutions; Petroleum Resources (Upstream); Downstream Petroleum Sector and Gas.

With the passage of MTEF and FSP the coast is now clear for President Muhammadu Buhari to present the 2022 federal budget any moment from now.

The MTEF/FSP was based on the following assumptions:

Daily crude oil Production – 1.88mbpd;Benchmark oil price – USD$57 per barrel; Exchange rate – N410/US$; GDP growth rate – 4.20%;

Inflation growth rate – 13.00%; FGN retained revenue – N8.36 trillion; Total FGN proposed expenditure – N13.98 trillion;Fiscal deficit – N5.62 trillion (including GOEs); New Borrowings – N4.89 trillion (including Foreign and domestic Borrowing; Statutory transfers – N613.4 billion; Debt Service – N3.60 trillion;

Sinking Fund – N292 billion; Pension, Gratuities & Retirees Benefits – N567 billion; Total FGN Expenditure – N13.98 trillion;Total Recurrent (Non-debt) – N6.21 trillion; Personnel Costs (MDAs) – N3.47 trillion;Capital Expenditure (exclusive of Transfers) – N3.26 trillion;

Special Intervention (Recurrent) – N350 billion; and Special intervention (Capital) – N10 billion. Chairman of the Joint Committee, Solomon Adeola (Lagos West who presented the report said the Committee had to raise revenue component of the proposed 2022 budget for most revenue generating