September 22, (THEWILL) –Â The Senate on Wednesday passed the 2022-2024 Medium Term Expenditure (MTEF) and Fiscal Strategy Paper (FSP) of the federal government, retaining all the assumptions and projections submitted to it by President Muhammadu Buhari in July.
It also approved the sum of N13.98 trillion as total aggregate expenditure of the federal government for the 2022 fiscal year.
The approvals followed the consideration of the report by the Senate Joint Committee on Finance, National Planning and Economic Affairs; Foreign and Local Debts; Banking, Insurance and Other Financial Institutions; Petroleum Resources (Upstream); Down Stream Petroleum Sector; and Gas, on the 2022-2024 MTEF/FSP.
The report was presented by the chairman of the joint committee, Senator Solomon Adeola.
Adeola, in his presentation, said the FG’s N13.98 trillion aggregate expenditure for 2022 is made up of total recurrent (non-debt) expenditure N6.21 trillion; personnel costs (MDAs) N3.47 trillion; capital expenditure (exclusive of transfers) N3.26 trillion; special interventions (recurrent) N350 billion; and special interventions (capital) N10billion.
The red chamber retained the exchange rate of N410.15 per dollar proposed by the executive and approved the projected gross domestic product growth rate of 4.20 percent.
The Senate retained the projected Inflation rate of 13 percent fiscal deficit estimate of N5.62 trillion.
The projected new borrowings of N4.89 trillion, including foreign and domestic borrowing by the president, were also retained and approved.
Also, the $3.5 bn International Monetary Fund loan at the rate of 0.01 percent to 0.02 percent proposed by the president was approved to shore up the internal borrowing and reduce external borrowing because of the exchange rate risks.The Senate retained the Federal Government’s 2022 revenue projection of N8.36 trillion and expenditure of N13.98 trillion.
Others parameters contained in the MTEF/FSP submitted by the president and retained by the red chamber are statutory transfers (N613.4 billion; debt service (N3.12 trillion); sinking fund (N292); pension, gratuities & retirees benefits of N567 billion; and aggregate expenditure of N13.98 trillion.
The aggregate expenditure comprises total recurrent (non-debt) expenditure of N6.21 trillion; and personnel costs (MDAs) of N3.47 trillion.
Others are capital expenditure (exclusive of transfers) of N3.26 trillion; special interventions (recurrent) amounting to N350 billion; and special interventions (capital) of 10 Billion.
