Despite the impasse on 2017-2019 Medium Term Expenditure Framework (MTEF), President Muhammadu Buhari is set to present the 2017 budget proposal to a joint session of the National Assembly on Wednesday next week.
Some details of the N7.281 trillion proposal according to officials, include capital expenditure of N2.078 trillion; recurrent expenditure: N2.9 trillion; exchange rate: N305 to US$1; oil benchmark: $42.5 per barrel; and daily oil production: 2.2 million.
However, controversies surrounding the MTEF were yet to be settled by the two arms of government as the National Assembly formally returned the document to the Presidency a few weeks ago, saying it was empty and unrealistic.
Some of the areas of dispute include proposed daily crude production of 2.2 million barrels per day, which legislators described as unattainable dream in view of unrelenting destruction of facilities by Niger Delta militants.
They also quarrelled with the crude oil benchmark of $42.5/barrel because of the then uncertainty surrounding global oil market.
However, the exchange rate has now been adjusted from N195/$ to N305/$.
Also, Buhari has returned the N500 billion social intervention programme which was not satisfactorily executed in the 2017 budget.
Foreclosing any thought from workers of a salary raise next year in view of the erosion of real wages as a result of currency devaluation, a source at the Budget Office said, “What will really assist Nigerians and the workers are the social intervention programmes and investments in infrastructure.
“Most of the government policies are targeted at reducing unemployment and poverty and wealth creation. These are areas of benefits for Nigerians and the workers.”
Basic Assumptions
Capital Expenditure = N2.078 trillion
Recurrent Expenditure = N2.9 trillion
Exchange Rate = N305 to US$1
Oil Benchmark = $42.5 per barrel (p.b)
Oil Production Level = 2.2 million per day