the Senate has reconsidered its earlier plans to commence debate on the Medium Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP) this week,
Instead, the leadership of the Red Chamber has summoned the Minister of Finance, Mrs. Kemi Adeosun, to brief it on the grey areas identified in the two documents.
Senate President Bukola Saraki had a fortnight ago, told lawmakers that the Upper Legislative Chamber was to commence debate on the MTEF/FSP to ensure it is given speedy passage in line with its economic revival agenda.
The MTEF and FSP provide the framework for the 2017 budget. The initial proposed early listing of the MTEF/FSP for debate was to fast-rack its consideration and passage so as to pave the way for President Muhammadu Buhari to present the 2017 Appropriation Bill before the National Assembly.
Some of the fiscal projections in the 2017 – 2019 MTEF/FSP which lawmakers had dwelt on, the proposed 2017 crude oil benchmark of $42.5 per barrel, up from $30 in the 2016 budget and the estimated N7.775 trillion as oil revenue to be generated considering the $42.5 per barrel benchmark and an estimated 2.2 million barrel per day oil production.
But in a letter dated October 19, 2016 and signed by Senate Leader Ali Ndume, Mrs. Adeosun is expected to brief the Senate leadership on some key issues contained in the twin documents.
The Senate is requesting for the draft copy of the Medium Term Development Plan upon which the 2017-2019 MTEF is founded.
It is also seeking a comprehensive report on the implementation of the 2016 budget as at September 30, 2016.
“All fiscal rates, taxes, charges used to derive the projected revenue in the 2017-2019 MTEF. A report on the structure/composition of the debt, funding, sources, how the borrowed funds are to be spent, as well as repayment plan and schedule,” Ndume demanded in the letter.
His letter reads: “Following the letter from His Excellency, President Muhammadu Buhari, dated September 30, 2016, forwarding the 2017-2019 MTEF and FSP, the Senate has begun work on the consideration of the document.
“Preliminary review suggests that the thrust of 2017-2019 MTEF and FSP, which is to reflate the economy out of recession to a sustainable and inclusive growth path, is based on the aspirations of this present administration as being articulated in the 2016-2019 Medium Term Development Plan.
“In addition, it is envisaged that the reflation of the economy will be achieved through increased capital spending in target sectors which will be financed through a stronger non-oil revenue drive, as well as increased borrowing.
“To enable the Senate objectively review the MTEF from a holistic fiscal perspective, we deem it necessary to invite you to a meeting to brief the leadership of the Senate on Tuesday, November 1, 2016 at the National Assembly by 2pm.”
