Deliberation on the 2019-2021 Medium Term Expenditure Framework (MTEF), Fiscal Strategy Paper (FSP) and the 2019 Appropriation Bill is expected to be one of the National Assembly’s priority concerns as it resumes from recess on Wednesday, 16 January, 2019.
While an N8.83 trillion budget proposal was presented to the National Assembly in December, 2018, deliberation on the budget customarily commences after the passage of MTEF and FSP (which contain the assumptions upon which the budget is premised).
Assumptions in the 2019-2021 MTEF and (FSP) for instance include an oil production of 2.3 million barrels per day, an oil benchmark price of $60 per barrel, an exchange rate of N305 per dollar, an inflation rate of 9.98% and a GDP growth rate of 3%.
The 2019 budget proposal also comprises of:
- Statutory transfers –36 billion;
- Debt Service – 14 trillion;
- Sinking fund – N120 billion to retire certain maturing bonds;
- Non-debt recurrent expenditure- N2,427,665,113,222 trillion and;
- Capital expenditure – 31 trillion
However, many predict that early passage of the 2019 budget will be stalled in view of the looming general elections, scheduled to hold on 16th February and 2nd March 2019.