The Federal Executive Council (FEC) has finalized plans to provide the National Assembly with an N26.01 trillion budget request for the fiscal year 2024 in order to complete all current projects around the country.
The FEC has also set the price of crude oil at $73.96, the exchange rate at $700, and oil production at 1.78 million barrels per day in the proposed budget to be presented to parliament.
Atiku Bagudu, Minister of Budget and Planning, revealed this during the Council meeting presided over by President Bola Tinubu on Monday, implying that the budget would be submitted early to facilitate a rapid passage.
“The assumptions include the oil price benchmark, which I said for 2024, we are assuming $73.96, oil production of 1.7 8 million barrels a day at the exchange rate of $700.
“Then the inflation of 21 percent and GDP growth rate of 3.76 percent. The aggregate expenditure is estimated at N26.01 trillion for the 2024 budget which includes statutory transfers of N1.3 trillion, nondebt recurrent expenditure of N10.26 trillion, debt service estimated at N8.25 trillion as well as N7.78 trillion being provided for personnel and pension cost.
“Debt service increased because N22.7 trillion ways and means was securitised meaning it became a Federal Government debt at nine percent.
“So that is easily about 2.1 trillion Naira. This describes that equally personnel costs went up because of transfers under the agreement with labor.”
During a briefing at the Presidential Villa’s Council Chamber in Abuja, Bagudu stated that the government is working to achieve a January-December budget cycle.
He stated that the executive will make every effort to guarantee that the 2024 budget is passed and signed by December 2024. Bagudu further stated that the FEC adopted the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Papers (FSP) for 2024-2026.
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