Budget and National Planning Minister, Udoma Udo Udoma yesterday told the Senate Committee on Finance that some slight adjustments had been effected on the 2019 Medium Term Fiscal Framework and Fiscal Strategy Paper (MTEF/FSP).
The adjustments came between when it was approved by the Federal Executive Council and the finalization of the 2019 budget proposals.
The minister who was briefing the Committee on the 2019 revenue and expenditure projections said the adjustment only affected the expenditure levels as it was done to reflect some unanticipated expenditure items and the consequences of those adjustments.
The key assumptions and macro-framework of the 2019 Budget targets 2.3 million barrels per day of oil production at an oil benchmark price of $60 per barrel; exchange rate of N305/$, Inflation rate at 9.98 per cent, Nominal consumption of N119.28 trillion, Nominal Gross Domestic Product (GDP) at N139.65 trillion and GDP growth rate of 3.01 per cent.
Before giving an overview of the 2019 Expenditure Framework, the Minister briefed the Committee on the 2018 expenditure out turns. He stated that of the total appropriation of N9.12 trillion, N7.24 trillion had been spent as at December 31, 2018; representing 79 per cent performance. He indicated that Debt Service and the implementation of Non-debt Recurrent Expenditure, including payment of workers’ salaries and pensions, were on track.
He explained that Capital releases only commenced after the signing of the 2018 budget on June 20, 2018; and as at January 11, 2019, a total of N1.226 trillion had been released for capital projects.
Spending on Capital, he explained further, was prioritised in favour of critical ongoing infrastructural projects in the power, roads, rail and agriculture sectors. “Implementation of the 2018 Capital Budget will continue into 2019 until the 2019 Budget is passed into law,” he pointed out.