The Senate yesterday approved the 2012-2015 Medium Term Fiscal Framework submitted to the National Assembly by the Presidency.
This followed the consideration and subsequent adoption of the report of the Joint Committee on Finance, Appropriation and National Planning, Economic Affairs and Poverty Alleviation on MTFF.
It specifically insisted that with “the partial deregulation of the downstream sector of the petroleum industry, all savings and accruals must be captured in safety net for targeted expenditures and approved by the National Assembly.”
The senate pegged the benchmark price of crude oil for the 2012 Appropriation Bill at $75 per barrel $5 more than the $70 initially proposed.
It said government should ensure a holistic alignment of the 2012 to 2015 MTFF and the Fiscal Strategy Paper with the requirements of the Fiscal Responsibility Act, 2007.
The lawmakers pegged the daily crude oil production figures to 2.48 million, 2.55 million, 2.58 million and 2.60 million for 2012, 2013, 2014 and 2015 respectively.
It said: “The 2012 to 2015 non-oil revenue growth rate estimates of 5 per cent, 16 and 17 per cent should be adopted, while the Federal Government should at the same time articulate its plan for plugging revenue leakages, improve the efficiency of revenue collections, encourage the flow of goods and services through the country’s ports and stop granting duty waivers.”
The lawmakers also pegged the exchange rate at N155 to one dollar, and asked Ministries, Departments and Agencies (MDAs) to submit their expenditure pattern with clearly defined performance action plan, concrete milestone and measurable performance indicators to the National Assembly.
It urged the government to restrict the Public Private Partnership (PPP) to specialised areas, saying the state should not abandon its social responsibility in the process.
It wants the Federal Ministry of Finance to provide comprehensive information on the 2012 Appropriation proposal with regards to the volume of capital projects to be funded through PPP.
The senate asked the Federal Government to freeze additional allocation to its overhead expenditure throughout the period of the MTFF.
It said the civil service should be restructured to enhance productivity, while the fiscal deficit ratios of 2.7 per cent, 2 per cent, 1.5 per cent and 1.5 per cent for 2012, 2013, 2014 and 2015 respectively, be adopted.
Chairman, Senate Committee on Finance, Senator Bassey Otu, who presented the report, said the adopted recommendations stemmed from an exhaustive deliberation on the MTFF and FSP with due consideration to the provision of the 1999 Constitution (As amended) and the Fiscal Responsibility Act, 2007.
The 2012 to 2015 MTFF and FSP are statutory requirements for submission to the National Assembly under the Fiscal Responsibility Act, 2007.