This decision was taken on Monday during a three-hour emergency Federal Executive Council (FEC) meeting chaired by the president Monday.
The 2016 budget estimate proposed by the Buhari administration is significantly higher than the N4.425 trillion proposed by the Executive led by former President Goodluck Jonathan for 2015, which was raised by the National Assembly to N4.493.
However, the oil benchmark at $38 is far below the $53 the 2015 budget was predicated upon.
Speaking with State House correspondents after the inaugural FEC meeting, the Minister of Budget and National Planning, Senator Udoma Udo Udoma, said government was looking at “expansionist” budget of N6 trillion.
According to him, council also approved the Medium Term Expenditure Framework (MTEF) for the 2016 budget.
The MTEF, Mr. Udoma explained, sets up the policies of government over the next three years.
He said that 30 percent of the budget estimate would go into capital projects with a view to addressing the nation’s infrastructure deficit just as he disclosed that government hopes to fund the 2016 budget by increasing non-oil revenue and from funds generated by government agencies, especially the Federal Inland Revenue Service.
The minister explained that the government wanted a prudent and credible budget.
He added that FEC projected an oil price of $38 per barrel and 2.2 million production barrels per day in the framework.
It would be recalled that Mr. Udoma said the FG would adopt zero-based budgeting next year as part of efforts to block all financial leakages and bring accountability to bear on government expenditure.