2023 budget deficit down to N10.5 trillion as Reps okay MTEF

As the House of Representatives considered and approved the 2023-2025 Medium Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP), deficit in the 2023 proposed budget of N19.76 trillion has been reduced from N11.3 trillion to N10.5 trillion.

This, according to report of the House Committee  on Finance, was based on the expected savings from petroleum subsidy, projected at about N737.31 billion, as the federal government said the regime may not exceed the first six months of 2023, expected to gulp N3.36 trillion.

The House in considering the report presented by Deputy Chairman of the committee, Abdullahi Saidu, approved N9.3 trillion revenue, which is above the federal government projected total revenue of N8.46 trillion captured in the MTEF/FSP 2023-2025 earlier presentation by the Minister of Finance, Dr. Zainab Ahmed.

The House also approved the recommendations of the daily crude oil production of 1.69mbpd, 1.83mbpd, and 1.83mbpd for 2021, 2022 and 2023 respectively and the oil price of $73 per barrel of crude oil due to continuous increases in the oil price in the global oil market and other peculiar situations such as continuous invasion of Ukraine by Russia as that will result in saving of N155 billion.

The green chamber further approved the exchange rate of N437.57 as contained in the MTEF FSP document with continuous engagement between the Central Bank of Nigeria and the Federal Ministry of Finance, Budget and National Planning with the view of bridging the gap between the official market and parallel market.

It equally approved the projected GDP growth rate of 3.75% be approved; the projected Inflation rate of 17.16%; projected New Borrowings of N8.437 trillion (including Foreign and domestic Borrowing), subject to the approval of the provision of details of the borrowing plan by the National Assembly; fiscal deficit of N10.563 trillion (including GOEs), amongst other approvals.

President Muhammadu Buhari is to lay the budget bill before the National Assembly on Friday.