Senate passes 2021-2023 MTEF/FSP

By Tunde Opalana

The Senate shortly before it adjourned plenary on Thursday, passed the 2021-2023 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).

The passage of the documents was sequel to the consideration of a harmonized conference report of the joint committee of the Senate and House of Representatives.

In his presentation, Chairman of the Senate Committee on Finance, Senator Olamilekan Solomon Adeola (APC/Lagos West) said the conference report of the Senate and House of Representatives was a harmonized position of both chambers upon examination of the differences contained in the 2021-2023 MTEF/FSP documents.

According to him, the joint committee after due deliberation recommended that daily crude oil production be pegged at 1.86mbpd, benchmark oil price at US$40 per barrel, exchange rate at N379 to $, gross domestic growth rate at three per cent, inflation growth rate at 11.95 per cent and Federal Government retained revenue at N7.99 trillion.

In addition, Sen. Adeola said that the total Federal Government proposed expenditure was pegged at N13.58 trillion, fiscal deficit at N5.60 trillion, new borrowings at N4.28 trillion (including foreign and domestic borrowing) and statutory transfers at N484.4 billion.

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Also, he added that debt service was pegged at N3.12 trillion, sinking fund at N220 billion, pension, gratuities and retirees benefits amounting to N520.6 billion, total Federal Government expenditure at N13.58 trillion and total recurrent (non-debt) expenditure at N5.66 trillion.

Similarly, personnel costs for Ministries, Departments and Agencies (MDAs) was put at N3.05 trillion, capital expenditure (exclusive of transfers) at N3.58 trillion, special intervention (recurrent) N350 billion; and special intervention (capital) at N20 billion.