The Nation’s Budget office has indicated  possibility of a step-down on the Federal Government’s 2014 budget in view of the recent dwindling in oil output which has put significant pressures on government revenues.

Bright Okogu, Director-General, Budget Office, disclosed that the parameters for budget calculations in terms of the oil volumes and even benchmark price have been scaled down in the 2014 budget being prepared as a result of the threats to oil.

He explained that the estimates for oil production volumes as well as benchmark price for the budget which were projected at 2.53 million barrels per day and $79 per barrel, respectively, for the 2013 budget will likely go down from these levels.

He also affirmed that the discovery of oil in some parts of the world, especially the shale oil and gas in the United States had become another major threat to the oil price and that all these have been put into consideration in calculating appropriate figures for the 2014 budget.

He purported that following the situation of things; there is the likelihood of a tighter budget for 2014 considering the glaring downward trend in production volume, adding that the reverse will undoubtedly be the case if things improve for better.

Okogu however disclosed that preparations for the 2014 budget have reached an advanced stage and that the draft copy will be ready for presentation to the National Assembly for commencement of debate in September.