Ahead of the planned return to the January to December budget cycle, the 2020 budget is expected to top agenda, as President Muhammmadu Buhari and his Ministers, meet for the first Federal Executive Council FEC, since the inauguration of the President for his second tenure.
The Cabinet is expected to use the meeting to cover lost grounds, coming more than 100 days after the President’s inauguration
President Buhari had charged the Ministers on their inauguration, to ensure that they work to achieve the target of delivering on federal Government Policies and Projects as listed for the periods of 2019-2023.
Already, the Economic Management Team EMT, headed by Vice President Yemi Osinbajo had met consistently, in the past few weeks, to fine tune the 2019 – 2021 Medium -Term Expenditure Framework and Fiscal Strategy Paper, which is a necessary precursor to the presentation of the budget, for approval, at today’s meeting of the Federal Executive Council FEC.
The Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) is a 3-year transparent planning and budget formulation tool used for linking policy, planning and budgeting over a medium-term.
The policy consists of the macroeconomic model that indicates estimates of revenues and expenditures, fiscal targets, risks as well as government financial obligations.
This is just as it establishes a credible basis for allocating public resources to strategic priorities while ensuring overall fiscal discipline. The goal is to improve the macro-fiscal situation as well as the impact of government policy
BusinessDay Villa sources revealed that unlike the previous situations, the 2019-2021 MTEF/FSP, is expected to provide information on the sectoral ceilings for Ministries, Departments and Agencies (MDAs) of government.
It is also expected to help President Buhari and his Ministers accelerate investment in critical infrastructure and human capital to improve social welfare and build a globally competitive economy
The 2019 Fiscal Framework and assumptions upon which the budget was based, show a projected budget deficit of N1.92trillion, debt servicing at N2.14trillion and revenue of N6.97trillion.
The 2019 budget was predicated on oil benchmark price of US$60 per barrel, production estimate of 2.3 million barrels per day and an exchange rate of N305 to one US dollar.
With a projected Capital expenditure of N2.09 trillion and non- debt recurrent of N4.07trillion, it is doubtful if the government
The President who had taken about 85 days after his inauguration to constitute his team of 43 Ministers, had expressed his administration’s determination to urgently work towards improved security, achieve diversified, inclusive economic growth, by setting foundation that will help lift 10 million Nigerians out of poverty in the next ten years, as well as fight corruption
The long period of time to constitute cabinet, is said to have slowed down government activities, with attendant consequences, including delayed response to the $9.6b the judgement debt, falling investors confidence.
Secretary to the Government of the Federation SGF Boss Mustapha, while setting the work plans after the Ministers were sworn in, gave them one month to quickly familiarize themselves with their Permanent Secretaries in their various Ministries to workout budget details
According to the SGF, “ You are to familiarize yourselves with the permanent secretaries of various ministries and within this period, set out to work particularly on the budget, and taking cognizance of the fact that we have assured the National Assembly that we are sending the budget immediately they return from the recess”
The SGF said the Ministers will also receive their ministerial mandate for them to review within two weeks “
Early passage of the Appropriation laws are seen as necessary requirements for proper public accountability as well as help government to properly track budget implementation and effective service delivery by the Ministries, Departments and Agencies MDAs of government.
This is also aimed at building a buoyant economy that supports inclusive growth and creates broad-based prosperity for every Nigerians, as government vows that it will absorb the two million Nigerians entering the labour market each year, as well as reduce the backlog of over 20 million unemployed or underemployed Nigerians.
Both the Senate President and Speaker of the House of Representatives had earlier called on the Presidency to work towards submitting the budget by September ending, so that the National Assembly can pass the budget before proceeding on Christmas holidays in December as part of plans to return to the January to December budget cycle.
Tony Ailemen, Abuja
