President Goodluck Jonathan on Wednesday forwarded a 2013-2015 medium –term expenditure framework and fiscal strategy paper to the Senate.
The president in the document disclosed that the share of recurrent spending in aggregate expenditure is set to further reduce from 71.47 percent in 2012 to 68.7 percent in 2013 while capital expenditure as a share of aggregate spending is set to increase from 28.53 percent in 2012 to 31.3 percent in 2013.
He said that in line with the policy of consolidation, the fiscal deficit is expected to continue on a declining path from 2.85 percent of GDP in 2012 to 2.17 percent in 2013.
According to the president, the federal government will sustain its efforts to increase revenue as well as that of capital spending in total expenditure, reduce the fiscal deficit and the corresponding borrowing requirement to a more sustainable level.
He further said that government intends to further strengthen fiscal consolidation by scaling back it’s spending and creating a prosperous environment for a private sector led growth.
In furtherance of this, it stated that government would rationalize the large number of agencies based on the recommendations of the Oronsaye committee.
President Jonathan noted that in the light of the huge amount paid on petroleum subsidy in 2011, the government will streamline the management of the subsidy scheme by strengthening the audit and verification process.
He further said that in line with the oil-price based fiscal rule, a cautious oil benchmark price of $75 per barrel has been chosen for 2013-2015 period while oil production of 2.53 mbpd, 2.61 mbpd and 2.65 mbpd will be adopted for the 2013, 2014 and 2015 fiscal years respectively.
