President Muhammadu Buhari has sought the review of the 2022 Medium-Term Expenditure Framework (MTEF) to accommodate N965.42 billion in new borrowing.
The fresh borrowing which the president said is compelled by new developments, is expected to increase the 2022 budget deficit to N7.35 trillion from the N6.39 trillion in the 2022 budget signed by President Buhari and under implementation.
The 2020 budget assented to President Buhari at the twilight of December 2021 provided for N2.57 trillion to be borrowed from domestic sources and another N2the .57 trillion from foreign sources, while government hopes to draw down N1.16 trillion from Multi-lateral/bi-lateral loans and harvest N90.7 billion from privatisation proceeds.
The request from President Bihari was contained in a letter read by the Speaker, Femi Gbajabiamila during the plenary at the House of Representatives.
Bihari in the letter sought an increase in the 2022 budget deficit to be financed through borrowing from the domestic market.
“As you are aware Mr Speaker, the new development both in the global economy as well as the domestic economy has necessitated the revision of the 2022 fiscal framework on which the 2022 budget was based.
“The total budget deficit is projected to increase from N965.42 billion to N7.35 trillion representing 3.99 per cent of the GDP.
“The increment of the deficit will be financed by new borrowings from the domestic market.
“Given the urgency of the request for revision of the 2022 fiscal framework and 2022 budget amendment, I seek the corporation of the National Assembly for expeditious action on this request,” he said.
The Speaker thereafter referred the letter to the House Committee on Finance for further legislative action.
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