Following the referral of the 2021-2023 Medium Term Expenditure Framework(MTEF) and Fiscal Strategy Paper to the Joint Senate of Finance and National Planning by the Senate for further legislative work before its passage preparatory to the presentation of 2021 Appropriation Bill by President Mohammadu Buhari, the Chairman of the Senate Committee on Finance , Senator Solomon Adeola (APC, Lagos West) said the Joint Committees will begin to critically interrogate the document from Wednesday next week with a view of presenting recommendations for the Senate passage of the document.
Disclosing the commencement of the process in Abuja, Senator Solomon Adeola said there is need for thorough scrutiny of the MTEF/FSP document in view of the fluid dynamics of the world economy following the disruptive impact of COVID-19 pandemic and the vagaries of the international market for crude oil and its attendant effects on our sources of revenue.
“There is need for all stake holders to come together to critically study the fundamentals of the “new normal” forced on the global economy by the COVID-19 pandemic. With the instability witnessed in the price of crude oil at the international market and the sluggish world economy with some nation falling into recession, there is need to assess our situation critically with a view of being realistic about our revenues sources for budgets going forward” he stated.
The chairman of the Senate Committee on Finance stated that invitations has been dispatched to Ministries, Departments and Agencies(MDAs) with presentations to make on the document to appear before the Joint Committee stressing that there is need to examine the rationale for pegging the price of crude oil at $40 per barrel and a projected crude oil production of 1.86 million barrels per day (mbpd).
“We are kick starting the process on Wednesday with Government Owned Enterprises(GOEs) like NNPC, NCC, NPA, Custom Service, NIMASA, DPR and others followed by the Ministry of Finance and its agencies and subsequently all revenue generating agencies” he stated.
Senator Adeola called on heads of MDAs to come fully prepared with rationales for their positions as the Joint Committee intends to present the report of the Joint Committee to the Senate immediately on resumption after recess to be in tandem with the achieved budget cycle of January- December of the 2020 Budget before the disruption of COVID-19.
The 2021-2023 MTEF/FSP was received by the Senate on July 20,2020 and committed to the Joint Committees of Finance and National Planning for further legislative work.