Buhari seeks parliament approval for 2021 – 2023 expenditure and fiscal policy
President Muhammadu Buhari on Tuesday sent the 2021 – 2021 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) to the National Assembly for approval ahead of the presentations of the 2021 fiscal policy later in the year.
In a statement from the office of the President of the Senate, Ahmad Lawan, the letter from Buhari was read on the floor of the Senate during plenary.
“It is with pleasure that I forward the 2021 – 2023 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) for the kind consideration and approval of the Distinguished Senate.
“Let me seize this opportunity to express my deep gratitude for the cooperation, support and commitment of the leadership and distinguished members of the Senate in our collective efforts to sustain the restoration of the January – December financial year.
Nigeria Cabinets Proposing N12.66 Trln Budget For 2021
“In line with our commitment, we have worked very hard to achieve and earlier submission of the MTEF/FSP. This is to allow the National Assembly enough time to perform its important constitutional duty of reviewing the framework.
“I herewith forward the 2021 – 2023 MTEF/FSP as the 2021 budget of the Federal Government will be prepared based on the parameters and fiscal assumptions of the approved 2021 – 2023 MTEF/FSP.
“I seek the cooperation of the National Assembly for expeditious legislative action on the submission,” the president wrote in the letter to the leadership of the National Assembly.
The president of the, however, did not reveal the details of the two documents, which would form the parameters for the 2021 budget proposal to be sent to the parliament later in the year.
The federal cabinet had last week approved the documents, which was presented by the minister of finance and budget, Zainab Ahmed at the weekly federal executive council (FEC) meeting.
In the documents approved by the cabinets, the government has proposed a total fiscal expenditure of N12.66 trillion for 2021, N1.86 trillion more than the N10/8 trillion in this year’s revised budget signed two weeks ago by the president.
The document also based the projected spending outlay on $40/ barrel crude oil benchmark and oil production of 1.6 million barrels per day with an exchange rate of N360 to the dollar.
However, experts are worried that Nigeria increased fiscal expenditure was based on huge deficits to be funded through borrowing from both domestic and external sources at a time the country’s total debt stock stood at N28.66 trillion and unstable global oil market.