The Senate has passed the revised 2022-2024 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
This comes barely 24 hours after President Muhammadu Buhari sought the Senate’s approval to make some changes in the framework.
Part of the changes the president sought was to increase the budget for 2022 from N13.98 trillion (initially approved by the the Federal Executive Council) to N16.45 trillion.
The increase, he had explained, is to accommodate allocations like N100 billion to the electoral umpire, INEC, for the 2023 elections; N50 billion as hazard allowance to health workers, among others.
He had also said the needed adjustments were important to reflect “the new fiscal terms in the Petroleum Industry Act (PIA).”
But, considering his requests, the Senate Committee on Finance pegged the federal government’s total expenditure at N16.39 trillion, reducing the proposed expenditure by N60 billion.
The panel also placed the fiscal deficit at N635.4 billion against the N692.0 billion proposed by Mr Buhari. The retained revenue of the federal government was put at N10.3 trillion against the president’s proposal of N10.13.
The provisions of N100 billion to the Independent National Electoral Commission (INEC) for the 2023 polls and N54 billion for the National Agency for Science and Engineering Infrastructure (NASENI) were retained by the upper legislative chamber.
The committee also recommended that Ministries, Department and Agencies submit their revenue profile as premise for being captured in the 2022 budget proposal.
READ ALSO: Buhari forwards 2022-2024 MTEF/FSP to National Assembly
Chairman of the Committee, Adeola Olamilekan, who presented the report, said that Gross Revenue Projection was decreased by N341.57 billion, from N8.870 trillion to N8.528 trillion.
He said, deductions for federally-funded upstream projects costs and 13 per cent derivation was slashed by N335.3 billion and N810.25 million, respectively.
Net Oil and Gas revenue projection declined by N5.42 billion from N6.540 trillion to N6.535 trillion, while Non-oil taxes remain unchanged.
The MTEF/FSP contains the parameters upon which the 2022 budget will be framed.
President Buhari is expected to present the budget for the coming year to a joint session of the National Assembly on Thursday.