The Federal Government Wednesday presented a revised Medium Term Expenditure Framework (MTEF) to the Senate.
In the revised proposal read at plenary, the 2015 budget proposal has been reduced by N200 billion, slashing it from N4.8 trillion to N4.6 trillion.
President Goodluck Jonathan in a letter sent to the National Assembly said the downward review of the MTEF was necessitated by the recent development in the international Oil market.
Earlier, the Executive had fixed the oil benchmark for the 2015 budget at $78 per barrel but now reduced to $73 dollar per barrel.
Also, government projects N4.733 trillion and N4.930 trillion for 2016 and 2017 respectively. In the proposal N750 billion will be used to service both foreign and local debts.
The Oil production estimate is now reduced 2.2million barrels per day at exchange rate of N162 to $1 from 2.3 million barrel per day.
“As you may recall, I had transmitted the 2015-2017 Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) to the National Assembly for consideration and approval.
“However, recent development in the international Oil market which necessitated that the Medium Term Expenditure Framework be revised.
“Consequently, following further consultation with key stakeholders, adjustments have been made to some of the key parameters as well as to fiscal estimates in the MTEF,” the President’s letter reads.
