President writes Senate, proposes N8.6tn for 2018 budget

The Federal Government has proposed the sum of N8.6 trillion for the 2018 budget.

This formed details of the 2018-2020 Medium Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP) submitted to the National Assembly by the executive.

President Muhammadu Buhari in a letter to the Senate said the MTEF and FSP was prepared against a back drop of a general adverse global economy uncertainties as well as fiscal challenges and recovery in the domestic recovery.

The proposed amount of N8.6 trillion represents a 15 percent increase from the 2017 budget.

The proposed 2018 budget, according to President Buhari, is predicated on an oil benchmark of $45 per barrel, with daily production output of 2.51 million barrels per day (bpd) exchange rate stands at N305/$1.

“In line with current realities in the international oil market, including weakening outlook of future prices occasioned by rising oil and unconventional oil supplies and slow economic recovery, as well as other potential downside risks, a benchmark oil of $45pb for 2018, $50pb for 2019 and $52pb in 2020 have been proposed,” he said.

Fiscal deficit was estimated to increase by N592.75bn (or 25.0%) from the estimate of N2.36trn in 2017.

The actual expenditure showed that N3.169trn is for recurrent (non-debt); N2.122trn for personnel costs (MDAs); N2.028trn for debt service; N350bn for special intervention programme (recurrent); N245.2bn for overheads; N191.631bn for CRF pensions; N194.339bn for power sector reform programme; N198.7bn for Service Wide Votes

The breakdown indicated that N2.122trn would be share of oil revenue; N1.373trn for non-oil; N807.8bn from Companies Income Tax (CIT); N807.570bn from independent revenue; N277.562bn from the Customs; N241.920bn from Value Added Tax (VAT) and N114.298bn from Federal Government’s share of signature bonus, among others.