The Federal Executive Council (FEC) on Wednesday approved the 2019-2021 Medium-Term Expenditure Framework and Fiscal Strategy (MTEF) Paper.
The council also approved the government’s proposal of N8.73tn for the 2019 budget, which is N400bn lower than that of the current fiscal year.
The decisions were taken at a meeting of the council presided over by President Muhammadu Buhari at the Presidential Villa, Abuja.
The Minister of Budget and National Planning, Udo Udoma, told State House correspondents that with the approval, the MTEF and FSP would be sent to the National Assembly.
Udoma also stated that the council pegged the price of crude oil for the 2018 Budget at $60 per barrel, the exchange rate at N305/dollar and daily crude oil production at 2.3 million barrels per day.
He said, “Today (Wednesday), the Federal Executive Council approved the 2019-2021 Medium-Term Expenditure Framework and Fiscal Strategy Paper, and they will be submitted to the National Assembly for consideration.
“The MTEF/FSP that was approved is designed to translate the strategic development objectives of the Economic Recovery and Growth Plan into a realistic and implementable budget framework for the medium term.
“As you know, relevant inputs from engagements with stakeholders, the last of such engagements was just last week, were part of the document that was submitted.”
The minister added, “The key highlights are the following assumptions, which are being proposed for the 2019 budget: oil price benchmark of $60; oil production of 2.3 million barrels per day; exchange rate of N305 per US dollars; and GDP growth rate of 3.01 per cent.
“In addition, the MTEF projects a budget size in 2019 of N8.73tn, which is about N400bn less than the N9.12tn for 2018.”