MTEF/FSP: FG Proposes N9.1trn 2020 Fiscal Year …As Senate, FG Move To Jan-Dec Budget Circle

The Federal Government has proposed N9.12trillion as total expenditure profile for the 2020 budget which includes grants and donor funding of N36.39billion.
The budget proposals for 2020 fiscal year is contained in the 2020-2022 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) forwarded to the Senate by President Muhammadu Buhari, last Wednesday, for consideration and approval.
The N9.12trillion proposal is about N2billion higher than the N8.92billion 2019 budget.
According to the MTEF/FSP documents, the aggregate fiscal deficit of Federal Government’s 2020 budget will be N2.28trillion as against N1.92trillion estimated and approved for the 2019 budget.
The N2.28trillion fiscal deficit proposal, according to the President, would be partly financed by new borrowings estimated at N1.70trillion, while about N252.08billion would be derived from privatization proceeds and N328.13billion as loans secured for specific development projects.
The budget proposals has key assumptions of $55 oil price bench mark, 2.18million barrels oil production per day, N305 to a US dollar exchange rate, 2.93% GDP growth rate, among others.
President Muhammed Buhari, in the letter read on the floor of the Senate by the President of the Senate, Dr Ahmad Ibrahim Lawan, commended the effort of lawmakers towards ensuring a cordial working relationship between the legislature and executive arms of government.
The letter reads: “It is with pleasure that I hereby submit the 2020-2022 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) to the Senate.
“Let me use this medium to express my gratitude for the much improved partnership between the legislative and the executive arms of the Federal Government in our goal of making the budget process deliver better outcomes for the Nigerian people in particular.
“I note with further appreciation, the commitment and support that Distinguished Senators have continued to demonstrate. Pursuant to the provision of the Fiscal Responsibility Act 2007, the preparation towards the submission of the 2020 budget to the National Assembly is progressing well.
“The MTEF/FSP was prepared taking into account, key development of the global and domestic environments. We have endeavoured to ensure that forecasted revenues are realistic, but also reasonably challenging in the face of our significantly constrained fiscal space.
“Planned spending has been set at prudent and sustainable levels consistent with governments overall developmental objectives as set out in the Economic Recovery and Growth Plan (ERGP).
“Given our shared objective of returning the budget to a predictable January – December fiscal year, with effect from 2020, I hereby forward the 2020/2022 FSP to the Distinguished Senate and trust that it would be extensively considered in order to facilitate the 2020 MTEF budget preparation.”

Nneka Amaechi-Nnadi, Abuja