The Federal Executive Council has approved a fiscal framework for the 2013 which spends N4.929 trillion on estimated revenues of N3.891 trillion.
Debt financing will be required to cover the nation’s growing expenses. President Goodluck Jonathan is to use $75 per barrel of oil as the benchmark for the 2013 budget.
Minister of Finance, Dr. Ngozi Okonjo-Iweala, disclosed the budget information to State House correspondents after the FEC meeting in Abuja.
"Everybody has agreed that the work for budget for 2013 must start early this year that is why we have the fiscal strategy paper this early,” she said. Once we finish here we are going to transmit the document to the National Assembly".
She said the budget might be presented to the National Assembly before the end of October when the members, who are currently on recess, would have resumed.
Okonjo-Iweala said the theme for the 2013 budget is “fiscal consolidation with growth”.
Other highlights of the proposed 2013 budget included an expected oil production of 2.5million barrel per day as against 2.48 million barrels per day in 2012.
Capital expenditure is also expected to rise n 2013 from 28.53% to 31.34% while recurrent expenditure is expected to decline from 71.47% in 2012 to 68.66% in 2013.
The minister also noted that work is on to ensure a decline in fiscal deficit and borrowing from 2.85% and N744.44billion in 2012 to 2.17% and N727.19billion in 2013 respectively. A further decline she said is expected by year 2015.
She also noted that government is to create a sinking fund of N25billion yearly to accumulate money for paying off bonds while another N75billion for debt