by Onyedi Ojiabor.
The Federal Government has proposed an estimate of N6,866,335,052, 740 for the 2017 fiscal year.
The government has also pegged the oil production figure for 2017 at 2.2 million barrels per day with a projected oil benchmark price of $42.50.
Average exchange rate for 2017 is slated at N290.00 per dollar.
These are contained in the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) submitted to the Senate by President Muhammadu Buhari yesterday.
The government budgeted N6,060,677,358,227 for the outgoing 2016 fiscal year while it pegged the oil production volume also at 2.2mbp.
The oil benchmark for 2016 is $38 while the average exchange rate is N197 to a dollar.
For 2017, the government put recurrent expenditure (Non debt) at N2.563b, it was N2.346b in 2016; personnel costs (MDAs) for 2017 is N1.815b, it was N1.748 in 2016 budget; overheads for 2017 is N180b, it was N163.392b in 2016.
Capital expenditure (Exclusive of transfers) is N1,756,199,794,310 while special intervention programme will receive N350billion, it was N300 billion in 2016 budget.
Presidential Amnesty Programme will receive N65 billion, it was N20 billion in 2016. Refund to special account is N50 billion.
Statutory transfers will be N370.697b, Debt service N1,639b, sinking fund to retire maturing loans is N177,460b.
Provisions in the MTEF the government said, are drawn from government’s development priorities over the medium term and more specifically driven by its fiscal strategy and reflect the broad aggregates of the government’s annual budget over the period.
The government noted that the aggregate revenue to fund the 2017 budget is projected to increase over the 2016 estimate of N3,855 trillion by about 8 per cent (or about N313 trillion)
It said that thirty three per cent of this is to come from oil sources while the balance is derivable from non oil sources-in consonance with the government’s renewed focus on diversification of its revenue base.
It said that the planned aggregate expenditure is estimated to exceed the provision of N6.06 trillion in the 2016 budget by 13.3 per cent (or about N806 billion)
The government said that the distribution the resources among the spending categories is driven by government’s strategic focus and the continuing efforts to complete and exit projects and programmes outlined in the strategic implementation plan of the 2016 budget.
It noted that over the medium term, government is strategically postured on reflating the economy while addressing issue around revenue generation.
“This informed the downward trajectory projected for the 2016-2018 medium term. However, this trajectory is a slightly altered for 2017 in order to make requisite provisions for some of its strategic programmes and projects over the medium term,” it said.
The government also said it would continue to provision for social intervention programmes in order to cater for the social and developmental needs of the poor and vulnerable Nigerians.
Accordingly, it said that the recurrent (Non Debt) expenditure and capital payments are projected to increase in nominal terms by N217.42 billion and N177.6billion especially in 2017 over the 2016 estimates.