Senate receives reversed expenditure framework from presidency

Senate receives reversed expenditure framework from presidency

SOURCE: GUARDIAN NEWS

PRESIDENT Goodluck Jonathan Wednesday officially transmitted the reversed 2015-2017 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF & FSP to the Senate.

  Recall that Mr. President had earlier in October sent the MTEF for the consideration and approval of the National Assembly. In the document, the Federal Government has proposed $78 per barrel as the oil benchmark for the period.

 In that letter dated October 15 and addressed to the President of the Senate, David Mark, Mr. President wrote:  “Pursuant to provisions of the Fiscal Responsibility Act, 2097, the preparation towards submission of the 2015 budget to the National Assembly is progressing well.

“The MTEF and FSP were prepared against the backdrop of the global economic uncertainty and developments in the domestic environment to ensure that planned spending is set at prudent and sustainable levels and is consistent with government’s overall development objectives set out in the Transformation Agenda of this administration.

“I hereby forward the 2015-2017 MTEF and FSP to the National Assembly and hope that it would be kindly considered and approved expeditiously in order to bring the 2015 FGN Budget preparation process to quick closure”.

 One month after the letter and less than two months to the end of the year, the President has forwarded yet another letter, proposing $73 per barrel as benchmark for 2015 budget.

  This development was not unconnected to the crash in the price of crude oil at the international market, which has brought the price down from over $100 per barrel to less than $80 per barrel.

 The letter, which was read by Mark at the beginning of the day’s sitting stated:

 “I transmitted the 2015-2017 Medium Term Expenditure Framework and Fiscal Strategy Paper to the National Assembly for consideration and approval.

However, recent developments in the international oil markets have necessitated that MTEF be reversed. Consequently, following further consultations with key stakeholders, adjustments have been made to some of the key parameters as well as to some fiscal estimates in the MTEF.

  “I hereby forward copies of the reversed 2015-2017 MTEF to the National Assembly. I hope that it will receive your usual kind expeditious consideration in order to bring the 2015 FGN budget preparation process to a quick closure”.

 Although, it was yet to be officially announced, it was gathered that the Senate has considered and adopted the initial MTEF before the new development. It is not certain however when the chamber will begin consideration of the reversed version.

   It also stipulates that MTEF, covering three fiscal years, be submitted annually to the National Assembly, which will serve as guide for the appropriation bill.

  Also yesterday, the Federal Executive Council (FEC) approved N272 million for the award of contract for the feasibility study and conceptual design of Lots 4, 5 and 6 stations of the Abuja Rail Mass transit network.

The Council which was chaired by President Jonathan with the Vice President, Mohammed Namadi Sambo in attendance, gave the approval  following a memo brought by the Minister of the Federal Capital Territory.

 The Federal Government had in August injected N10 billion for thecompletion of Abuja light rail project handled by China Civil Engineering Construction Corporation (CCECC) with an assurance that the project would be completed in 2015.                   .

 The project,  is also jointly financed by the Federal Government and China EXIM Bank through a loan of $500 million commenced in 2009 and has attained 52.7 per cent completion.

 Briefing State House correspondents after the weekly council meeting lasted for just one hour , the FCT Minister Bala Mohammed alongside the supervising minister of information, Nurudeen Mohammed, said the FCT Rail Mass transit  system was designed primarily as a mover of people within and between the satellite towns and the different phases of the city. Also, the Abuja rail system will be integrated with the planned national rail network.