2021 budget: Reps approve N13.08 trn expenditures, $40 oil price benchmark

The House of Representatives has approved the Medium Term Expenditure Framework (MTEF), the Fiscal Strategy Paper (FSP), and put the total government proposed 2021 expenditure at N13.08 trillion.

This followed a unanimous adoption of a report presented by the Chairman, House Committee on Finance, Rep. James Faleke (APC-Lagos), at the Committee of Supply on Wednesday.

The House approved a total recurrent (Non-Debt) of N5.67 trillion, N3.58 trillion for Personel Costs, N350 billion for Special Intervention recurrent and N20 billion for capital.

The House put the projected daily crude oil production at 1.86 mbp and the benchmark oil price at 40 dollars per barrel.

It projected N379 to a dollar as exchange rate and GDP growth rate was put for 3.00 per cent while inflation growth rate was put at 11.95 per cent.

The fiscal deficit was put at N5.20 trillion and new borrowings was N4.28 trillion (foreign and domestic)

The house approved N484.49 billion for statutory transfers, N3.12 trillion for debt service and N220 billion as Sinking Fund while N520.69 billion for pension, gratuities and retirees’ benefits.

Faleke frowned at revenue generating agencies for poor remittances, urging the house to amend the relevant laws to further restrict expenditures.

According to him, the sum of N1.4 billion outstanding remittance was discovered in the case of just one of these agencies between 2018 and 2019.