The Federal Executive Council, FEC has proposed the sum of N26.01 trillion for the 2024 fiscal year to be submitted to the National Assembly.
The Council says it is working towards ensuring that the January to December budget circle is maintained and that the 2024 budget is passed and signed before December 31, 2023.
The Minister of Planning and Budget, Atiku Bagudu, disclosed at the end of the Council meeting presided over by President Bola Tinubu at the Council Chamber, Presidential Villa, Abuja.
Bagudu added that the executive is required by the Fiscal Responsibility Act to present to the National Assembly ahead of a budget presentation, a document which will provide the medium-term economic outlook for the economy.
According to the Minister, the Federal Executive Council made assumptions about the reference price for the price of crude oil which is at $73.96 as well as an exchange rate of $700.
He said: “Now, it was presented on the background of the commendable measures that have been taken since June to restore macroeconomic stability particularly the deregulation of petroleum prices, which we maintained that subsidies are gone and indeed the regulation of the foreign exchange market.
“So Council deliberated, as well as the implication of this and all measures promised in the renewed hope agenda consumer credits, mortgages, mortgage, reversed or dismissed institution as well as funding the newly aligned institutional changes particularly ministries with specific functions that can generate growth so that would be better for our country” Bagudu added.
The council members acknowledged the medium-term expenditure framework and agreed that the next step of consultation and presentation to the National Assembly should begin.
The Minister of Planning and Budget added that several engagements by President Tinubu, the Minister of Finance and the coordinating Minister of the Economy, Wale Edun as well as the recent engagements by the Governor of Central Bank will assist in clearing the backlog while the government hopes the exchange rate will begin to reflect a stronger value chain than the current weakness.
“What we are seeing from investors from the engagement led by the President, personally two different countries, in particular India, UAE and France, the engagements led by the Coordinating Minister of the Economy engagement led by the trade and investment minister and indeed other ministers. So now increasing engagement made by the governor of the Central Bank of Nigeria, and indeed all other ministers. So we believe that these inflows will help us to clear the backlog and the exchange rate will begin to reflect a stronger value than the current weakness.
The Minister further disclosed that the assumption for the oil price benchmark for the year 2024 is 1.78 million barrels per day at the exchange rate of N700. He also said that the government expects inflation to stand at 21 per cent while the GDP growth rate will be 3.76 per cent.
“The assumptions include the oil price benchmark, which I said for 2024 we are assuming 73.96 Or a production of 1.7 8 million barrels a day exchange rate of 700. Then the inflation of 21% and GDP growth rate of 3.76%. The aggregate expenditure is estimated at 26.0 1 trillion Naira for the 2024 budget which includes statutory transfers of 1.3 trillion non-debt recurrent expenditure of 10.2 6 trillion debt service estimated at 8.2 5 trillion and as well as 7.78 being provided for personnel and pension cost.
He disclosed that the Debt service will increase to N22.7m with the expectation of scrutinizing the Federal government debt at 9 per cent.
“So that is easily about 2.1 trillion Naira this describes that equally personnel costs went up because of the transfers under the agreement with labour .”
The Minister briefed at the end of FEC, alongside his colleagues from the Ministry of Information and National Orientation, Mohammed Idris, Minister of Finance and Coordinating Minister of Economy, Wale Edun, Works Engr. Dave Umahi, Industry, Trade and Investment, Doris Uzoka-Anite, Labour and Employment, Simon Lalong as well as the Minister of State for Labour, Nkeiruka Onyejecha, Bagudu said Council has approved the 2024-2026 medium-term expenditure framework (MTEF) and fiscal strategy papers (FSP).
Dominica Nwabufo
