DRAMA ensued on the floor of House of Representatives on Wednesday over reconsideration of 2018-2020 Medium Term Expenditure Framework, MTEF and Fiscal Strategy Paper, FSP as some members kicked against key assumptions in the document.
The Deputy Speaker, Honourable Lasun Yusuf who presided over plenary session had hectic day dousing the tension generated from members of the opposition, Peoples Democratic Party, PDP.
House leader, Honourable Femi Gbajabiamila , who raised the motion to debate the MTEF/FSP documents noted that sections 11 (3) of the fiscal responsibility Act, 2007, provides that the medium-term expenditure framework shall be considered for approval with such modifications, if any as the National Assembly finds appropriate by a resolution of each house of the National Assembly.
He stated also that section 13 of the fiscal responsibility act, 2007, provides that the MTEF shall contain among other things a macroeconomic framework setting out the macroeconomic projections for the next three years as well as the underlying assumptions for those projections and an evaluation and analysis of the macroeconomic projections for the preceding three financial years.
He noted for instance, that in 2018, oil production is set at, 2.5mbpd, 2.8mbpd in 2019 and 3.1 in 2020. For oil benchmark, $45 in 2018, $50 in 2019 and $52 in2020.
Honourable Gbajabiamila also announced that the exchange rate remained at N305 with thin the three years, adding that collectible revenues are projected at N 11.6trilion in 2018, N 14.7trilion in 2019 and N 15.2trillion in 2020.
Some of the members had raised concern that consideration and approval of the MTEF/ FSP by National Assembly after the budget was presented by President Muhammadu Buhari were against the provision of the Fiscal Responsibility Act.
Specifically, Honourable Betty Appiafi said that approval of the MTEF/FSP documents should have been passed before the presentation of 2018 budget, saying that it is the decisions or recommendations from the considerations by the National Assembly that would determine the outlook of the final passage of the 2018 estimates.
But the Deputy Speaker said that “we have the time and opportunity to consider the MTEF/FSP and make changes. Better late than never because this is November”.
Honourable Lasun also informed members that the leadership of the House has been having meetings with the executive on the MTEF document.
The Deputy Speaker also said some key assumptions will not be realizable, adding that “We met and told the Executive that 2.5mbpd would not be realizable, but they told us that what is lost in volume can be compensated through price”.
Also speaking, Honourable Daniel Reiyeneju, said that we shouldn’t have allowed the budget laid because it violated the fiscal responsibility law. The best democracy is when parliament refuses to carry out illegality. We are in a progressive house and the nation must move on. Let it go, we will take your MTEF and allow you go, but in the interest of Nigerians”.
However, after debates, the MTEF/FSP documents were passed to committees on Finance, Appropriation, National Planning and Economic Development, Legislative Budget and Research, Aids, Loans and Debt Management for scrutiny and make appropriate recommendations to the House.
and then