The Federal Executive Council (FEC) on Monday approved a budget proposal of N6 trillion for the 2016 fiscal year. The proposal is predicated on 38 dollars per barrel of crude oil and a production output of 2.2 million barrel per day. The approval by council followed the adoption of the Medium Term Expenditure Framework (MTEF) for three years presented to it by the Planning and Budget Ministry.
Minister of Budget and National Planning, Udoma Udo Udoma, disclosed this to State House correspondents while briefing on the outcome of the council meeting which lasted for about three hours. He said besides crude oil sale, the budget would be financed through increased revenue drive by government agencies, efficiency in income tax collection, keeping down recurrent expenses while the difference would be sourced through borrowing. The minister also disclosed that capital expenditure had been increased to 30 per cent in the current proposal down from about 15 percent in the last budget.
According to him also, all the increases made to next year’s budget which brings it to six trillion from over five trillion budgeted this year were on capital expenditure. He said the details of the proposal would be made public after a feedback from the National Assembly on the MTEF which would be forwarded to the legislature. On the exchange rate used in the proposal, the minister said they had relied on the rate given by the Central Bank of Nigeria. “We want a prudent, credible budget. We are working on the exchange rate given by the CBN. We’ll reduce recurrent,” the minister said.
Credit: DailyTimes
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