From Fred Itua, Abuja
The Senate, yesterday, commenced the consideration of the 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) as required by Fiscal Responsibility Act.
According to a letter sent to the Senate by President Muhammadu Buhari and read on the floor of the Upper Legislative Chamber by its President, Ahmad Lawan, the Federal Government is projecting a revenue generation of N6.54 trillion and N2.62 trillion to accrue to the Federation Account on VAT, respectively.
While referring it to the Senate Joint Committee on Finance, National Planning, Local and Foreign Debts and Petroleum Upstream, Lawan urged them to work on the document within 24 hours to enable members pass it on Thursday before embarking on its annual vacation.
The Federal Executive Council, had last week, authorised the funding of a N5.26 trillion budget deficit through borrowings.
Minister of Finance, Budget and National Planning, Zainab Ahmed, said she presented a memo on behalf of the Ministry to FEC with a 2022 projected revenue of N6.54 trillion and N2.62 trillion to accrue to the Federation Account and VAT, respectively.
She said this revenue is projected to increase in 2023 to N9.15 trillion.
Ahmed explained that the MTF FSP describes the Federal Government’s socio economic and developmental objectives and priorities for the reporting period of 2022 to 2024 and the fiscal strategies to be put in place, and policies to achieve in the priorities.
The minister said the report to council highlighted the key drivers of government’s revenue and the spending plans.
“The goal for us is to improve the nation’s macro economic situation or reposition the economy on the path of inclusive diversified as well as sustainable. The MTF FSP consists of medium term macro economic projections, fiscal targets and estimates of revenue and expenditure including government’s financial obligations. We have also presented to the federal government the projected revenues for the 2022 to 2024. “Specifically for 2022.The revenue that we expect is 6.54 trillion and 2.62 trillion to accrue to the Federation account on VAT respectively. And then there will be a net oil and gas revenue available for the Federation Account for FAAC for distribution will be 6.15 1 trillion in 2022.
“This revenue is projected to increase in 2023 to 9.15 trillion. The total expenditure that we are expecting we have projected and approved by Council is an aggregate expenditure of N13.98 trillion. This includes N1.1trillion of government owned enterprises expenditure as well as grants and donor funds donor funded projects in the sum of N62.24 billion.
“This means that this budget is just three per cent higher than the 2021 budget in terms of the size of expenditure.”
