The Federal Executive Council (FEC) has approved the 2019 budget proposal.
This was done during the FEC session that was presided over by President Muhammadu Buhari on Friday.
The FEC meeting started by 10:30 am and th update for the 2019 was given after the session by the Minister of Budget and National Planning, Senator Udoma Udoma.
Senator Udoma did not reveal the details of the budget proposal saying it is against the Nigerian Constitution for the President to reveal the figures to the public before it is presented to the Joint Session of the National Assembly.
He also added that the Presidency will liaise with the National Assembly to determine when a draft budget proposal will be presented to a Joint Session of the Legislators.
The Federal Executive Council (FEC) approved the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for the 2019 -2021 to provide a template for the 2019 budget. (Sun News Online)
The approved estimate is N8.73tr for the 2019 budget, N400bn less than last that of this year. Approved figure by NASS for 2018 was 9.1 trillion naira.
Udoma said that the government plans to the level of borrowing from N1.6 trillion in 2018 to N1.5 trillion in 2019, while the deficit component would be reduced from N1.9 trillion in 2018 to N1.6 trillion.
Senator Udoma added that the government is confident that the oil output will increase above the present 1.9 million barrels a day to 2.3 million which is the target for the government. With new production efforts it can rise to 2.5 million barrels a day, he said.
An oil benchmark of the $60 used being used for the 2019 budget proposal even with the rising price of oil of about $80. The benchmark for Economic Recovery Growth Plan (ERGP) by the government is $50.
The official exchange rate is placed at 305 naira, Udoma said. He added that the government is working to keep inflation low especially with the slight increase in the last two months and 18 months of consecutive decline.
The projected Gross Domestic Product (GDP) is placed at 3.01 per cent, reduced from 4.5 per cent in the ERGP, 3.6 per cent in 2020 and 3.9 per cent in 2021.
“Growth is expected to increase from 0.8 per cent in 2017 to 2.1 per cent this year and 3.01 per cent in 2019 with the continued implementation of the ERGP in 2019 and an improved outlook for oil prices,” he said.
Production estimates by the government is N3.6 trillion from oil, up by about N500 billion from last year’s figure.
Credit: Sun News Online