The Senate has passed the 2021-2023 Medium Term Expenditure Framework and Fiscal Strategy Paper ahead of the presentation of the 2021 Appropriation Bill to the National Assembly by President Muhammadu Buhari on Thursday.
Chairman of the Joint Committee, Senator Solomon Olamilekan Adeola, in his presentation said the key parameters and macroeconomic framework driving the 2021-2023 Medium Term Expenditure Framework were revised in line with emerging realities that necessitated the revision of the 2020-2022 Medium Term Fiscal Framework.
Accordingly, the Senate approved daily crude oil production of 1.86mbpd, 2.09mbpd, and 2.38mbpd for the year 2021, 2022 and 2023; USD$40 per barrel as Oil Price Benchmark; and an Exchange Rate of N379/US$.
Inflation Growth Rate was projected at 11.95 percent; while Gross Domestic Product (GDP) growth rate was fixed at 3percent.
The Upper Chamber also approved the Federal Government’s retained revenue of N7.89 trillion; Fiscal deficit of N5.19 trillion; N4.28 trillion projected new borrowings; Statutory transfers totaling N484.4 billion; N3.12 trillion as Debt estimate; N220 billion Sinking Fund; and N520.6 billion as Pension, Gratuities and Retirees Benefits.
The Senate also approved the Federal Government’s Aggregate Expenditure of N13.08 trillion; out of which N5.66 trillion is for Total Recurrent (Non-Debt); N3.05 trillion for Personnel Costs; N3.58 trillion for Capital Expenditure; N350 billion for Special Intervention (Recurrent); and N20 billion for Special Intervention (Capital).
The Senate in its adoption of the Joint Committee’s recommendations underscored the need to amend Sections 21(1) and 21(2) of the Fiscal Responsibility Act to improve revenue generating and remittance capacity of Agencies of Government.
