The House of Representatives yesterday approved a new borrowing plan that will enable the government borrow about N8.437 trillion from foreign and domestic sources to finance the 2023 budget.
Approving the 2023-2025 Medium Term Expenditure Framework and Fiscal Strategy Paper, the House said this was subject to the approval of the provision of details of the borrowing plan by the National Assembly.
The lawmakers also approved the recommendation of its Committee on Finance that the cost of petroleum subsidy be capped at N1.7 trillion while all relevant agencies of governments should take necessary action to keep the petroleum subsidy cost within the approved ceiling in 2023.
They noted that by the action, a total of N737.306 billion would be saved and used to reduce the fiscal deficit of N11.3 trillion of the government, as contained in the MTEF/FSP, thus reducing the deficit to N10.563 trillion
The House approved daily crude oil production of 1.69 million barrels per day (mbpd), 1.83mbpd for 2023 and an oil benchmark of $73 per barrel of crude oil as a result of continuous increase in the oil price in the global oil market and other peculiar situations, such as continuous invasion of Ukraine by Russia.
The Green Chamber said this would result in the saving of about N155 billion.
The lawmakers suggested that the existing official exchange rate of N437.57 should be sustained, as contained in the MTEF FSP document with continuous engagement between the Central Bank of Nigeria (CBN) and the Federal Ministry of Finance, Budget and National Planning with the view to bridging the gap between the official market and parallel market.
They also approved the projected Gross Domestic Product (GDP) growth rate of 3.75 per cent as well as the projected inflation rate of 17.16 per cent.
The House also approved a retained revenue of N9.352 trillion as a result of increase in the benchmark as the ceiling oil subsidy for the year in review; Fiscal deficit of N10.563 trillion (including GOEs), statutory transfers totaling N722.11 billion and Debt Service estimate of N6.31 trillion.
The lawmakers also approved a Sinking Fund of N247.7 billion; Pension, Gratuities and Retirees Benefits of N827.8 billion; and aggregate FGN Expenditure of N19.76 trillion comprising Total Recurrent (non-debt) of N8.53 trillion; Personnel Costs (MDAs) of N827.8 billion; Capital Expenditure (exclusive of transfers) N3.96 trillion; Special Intervention (Recurrent) amounting to N350 billion; and Special intervention (Capital) of N7 billion.
They urged the Federal Government to significantly reduce waivers and tax exemptions granted to corporate organisations to cushion the effect of the budget deficit.
The House said all revenue-generating agencies should reconcile their accounts with the Fiscal Responsibility Commission and the Office of the Accountant General of the Federation on a regular basis.
They said there should be a common electronic platform for reconciliations amongst the government MDAs, OAGF and Fiscal Responsibility Commission for effective monitoring and remittances, and that there should be strict compliance with the Constitution, Fiscal Responsibility Act and other extant laws by all agencies of the government with regards to revenue remittances.
The lawmakers said relevant committees of the National Assembly are at liberty to remove recycled projects in their budget proposal during budget defence, while annual GOEs’ budgets should be mainstreamed into the Federal Government budget processes to ensure the same level of scrutiny, procurement and monitoring exercise.
The House recommended that 10 out of the 63 GOEs be placed on the cost of collections with immediate effect, just like the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS), to serve as a test case for other GOEs which can be added in the future.
The list, the lawmaker said, included the Nigeria Communication Commission (NCC), Corporate Affairs Commission (CAC), Nigeria Port Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA), Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Nigeria Midstream, Downstream Petroleum Regulatory Authority (NMDPRA), Joint Admission and Matriculation Board (JAMB) and the National Agency for Food and Drug Administration and Control (NAFDAC), while the Finance Bill should be ended to make room for them.