The Federal Executive Council (FEC) has approved a proposed budget of N47.9 trillion for the year 2025.
Minister of Budget and Economic Planning, Atiku Bagudu, stated this while briefing State House correspondents at the end of the FEC meeting presided over by President Bola Ahmed Tinubu.
The minister said the approval is part of the “Medium Term Expenditure Framework (MTEF) for 2025-2027, in accordance with the Fiscal Responsibility Act of 2007”.
Bagudu explained that the FEC pegged the price of crude oil at $75, exchange rate at 1400 Naira to a dollar and projected oil production of 2.06 million barrels per day, adding that with the expected growth rate of 3.19% in the second quarter of 2024, the federal government will continue to tackle inflation, strengthen economic resilience and provide more support for the economy.
He pointed out that the budget size approved for presentation to the National Assembly in the MTEF is N47.9 trillion, with new borrowings of N9.22 trillion to finance the budget deficit in 2025.
The minister further said, the approval included a review of the 2024 budget implementation, promising progress in revenue collection and expenditure management, despite lags in pro-rated targets.