• Direct committee to scrutinise key assumptions
THE House of Representatives on Tuesday committed the 2017 – 2019 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) to the Committees on Finance, Appropriations, National Planning and Economic Development, Legislative Budget and Research and Aids, Loans and Debt Management to scrutinise and make recommendations to the House.
The House before passage faulted key assumptions in the MTEF document presented as by the Executive.
This is coming just as the House passed a resolution admitting President Muhammadu Buhari into the chamber for presentation of 2017 budget estimates today.
The House resolution followed the adoption of a motion moved by House Leader, Honourable Femi Gbajabiamila, entitled, “admittance into the Chamber” of President Muhammadu Buhari and his entourage.
Hon Gbajabiamila, while moving the motion said that, “pursuant to Order 19, Rule 8, do admit the President, Commander-in-Chief of the Armed Forces and his entourage for the purpose of presenting an address to a joint sitting of the National Assembly on the 2017 budget estimates on Wednesday, 14 December, 2016 at 10.00 am.” But the time was amended to 12 noon.
The House Leader, while presenting the MTEF document for passage, reminded his colleagues that, the document was presented to the House on October 4.
Debating the MTEF document most of the lawmakers kicked against the key assumptions in the proposal, especially oil benchmark, exchange rate amongst other and appealed to government on the need to end militancy in the Niger Delta and insecurity in the North East.
The assumptions on crude oil production indicated 2.2 million barrel per day in 2017; while 2.3 mbpd in 2018; and 2.4mbpd in 2019, this the lawmakers said was unrealistic.
On the crude oil benchmark, it projected $42.5 per barrel for 2017 budget; and $45 for 2018. For 2019, the figure was put at $50. For the exchange rate, the government pegged it at N290 per dollar.
The Deputy Speaker, Honourable Lasun Yusuf, in his contribution was particular about the crude oil benchmark, saying that the price of oil at the international market is not encouraging.
On his part, Honourable Kayode Oladele, said that the exchange rate of N290 to a dollar for 2017 is unsustainable, as according to him, exchange rate today stands at N480 to N490 to a dollar.
He then suggested that, the House committees should look into the MTEF document and bring out what is sustainable to the country’s economy.
The House Leader, Honourable Leo Ogor, in his own contribution said that source of funding of the budget was not clear, adding that the assumptions must be very close to reality.