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Published On: Thu, Sep 26th, 2019

FG proposes N9.1tr 2020 budget

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*As Buhari sends 2020-2022 MTEF, FSP to Senate

By Ikechukwu Okaforadi and Musa Adamu

The Federal Government has proposed the sum of N9.12trillion as total expenditure profile for the 2020 budget which includes grants and donor funding of N36.39billion.
The N9.12 trillion 2020 budget proposals which is just N2bn higher than the NN8.92bn 2019 budget is contained in the 2020-2022 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) forwarded to the Senate by President Muhammadu Buhari Wednesday for consideration and approval.
President Buhari in the MTEF/FSP documents also stated that the aggregate fiscal deficit for the 2020 budget will be N2.28 trillion as against N1.92trillion estimated and approved for the 2019 budget.
The N2.28trillion fiscal deficit proposal, according to the President, will be partly financed by new borrowings estimated at N1.70trillion, while about N252.08billion will be derived from privatization proceeds and N328.13billion as loans secured for specific development projects.
The underlining assumptions for the budget proposals as contained in the document are $55 oil price bench mark, 2.18million barrels oil production per day, N305 to a US dollar exchange rate,2.93% GDP growth rate etc.
President Buhari in the letter read on the floor of the Senate by the Senate President, Ahmad Ibrahim Lawan, commended the effort of lawmakers towards ensuring a cordial working relationship between the legislature and executive arms of government.
The letter reads: “It is with pleasure that I hereby submit the 2020-2022 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) to the Senate.
“Let me use this medium to express my gratitude for the much improved partnership between the legislative and the executive arms of the Federal government in our goal of making the budget process deliver better outcomes for the Nigerian people in particular.
“I note with further appreciation, the commitment and support that Distinguished Senators have continued to demonstrate. Pursuant to the provision of the fiscal responsibility Act 2007,the preparation towards the submission of the 2020 budget to the National Assembly is progressing well.
“The MTEF/FSP was prepared taking into account, key development of the global and domestic environments. We have endeavoured to ensure that forecasted revenues are realistic, but also reasonably challenging in the face of our significantly constrained fiscal space.
“Planned spending has been set at prudent and sustainable levels consistent with governments overall developmental objectives as set out in the Economic Recovery and Growth Plan (ERGP).
“Given our shared objective of returning the budget to a predictable January – December fiscal year, with effect from 2020,I hereby forward the 2020/2022 FSP to the Distinguished Senate and trust that it would be extensively considered in order to facilitate the 2020 MTEF budget preparation.”
Meanwhile, the Senate on Wednesday announced formally the receipt of the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) from President Muhammadu Buhari.
The MTEF and FSP documents came with a covering letter addressed to the President of the Senate, Ahmad Ibrahim Lawan.
President Buhari, in the letter read on the floor of the upper chamber during plenary, commended the effort of the lawmakers towards ensuring a cordial working relationship between the legislature and executive arms of government.
The letter reads: “It is with pleasure that I hereby submit the 2020 – 2022 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) to the Senate.
“Let me use this medium to express my gratitude for the much improved partnership between the legislative and the executive arms of the Federal government in our goal of making the budget process deliver better outcomes for the Nigerian people in particular.
“I note with further appreciation, the commitment and support that Distinguished Senators have continued to demonstrate. Pursuant to the provision of the fiscal responsibility Act 2007, the preparation towards the submission of the 2020 budget to the National Assembly is progressing well.”
The President stated that key developments of the global and domestic environments were taken into consideration in the preparation of the MTEF/FSP.
He added that the Government strived to ensure that forecasted revenues were not only realistic, but also reasonably challenging in the face of its significantly constrained fiscal space.
“Planned spending has been set at prudent and sustainable levels consistent with governments overall developmental objectives as set out in the Economic Recovery and Growth Plan (ERGP).
“Given our shared objective of returning the budget to a predictable January – December fiscal year, with effect from 2020, I hereby forward the 2020/2022 FSP to the Distinguished Senate and trust that it would be extensively considered in order to facilitate the 2020 MTEF budget preparation,” the President said.

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