Medium term expenditure frameworks mtefs help centralfederal government organisations to adopt a medium term budgetary perspective rather than solely an annual one. Mtef and fiscal strategy paper fsp are important economic management reform documents designed to guide annual budget planning and. This case study provides an inside story of medium term expenditure framework reform in the. The budget becomes the first year of the mediumterm framework when it is approved, the budget authorizes expenditure for the next year, in contrast to mtef which only indicates expenditure for future years the annual budget should not be a separate process. The actual expenditure incurred for the year was at 95% of the adjustment budget amount of r. Preliminary lessons from africa february 2002 africa region working paper series no. Debt is expanding and debtservice costs are the fastestgrowing category of government expenditure.
Medium term expenditure framework 55 personnel expenditure forms about half of consolidated national and provincial spending, excluding payment of interest on government debt. Medium term expenditure framework and budget effectiveness in nigeria issn. Total employment in the public service has declined slightly since 1997, while average remuneration has increased by about 2 per cent a year in real terms. There are other terms that could equally well be used, such as medium term budget framework. The main purpose of the mtef is to provide an analysis based on the countrys macroeconomic environment, thus setting the.
It also describes the banks engagement with mtefs, presents main points of debate over the experience with mtefs, and provides a rationale for this study. The government of botswana has committed to introduce the mtef by 2016. Note, the term medium term fiscal framework is not usually synonymous with mtef as it tends to cover only the aggregates. You can copy, download or print oecd content for your own use, and you can include excerpts from oecd publications. The information collected on budgetary procedures, medium term frameworks and stability and convergence programmes covers issues of preparation, status, implementation, and connectedness with the budget including supplementary and corrective budgets. Where do i find the medium term expenditure framework mtef. Sichembe acting secretary to the treasury ministry of finance. The mtef is a transparent planning and budget formulation process within which government establishes contracts for allocating public resources to their strategic priorities while ensuring overall fiscal discipline. Medium term expenditure framework 202015 republika e kosoves republika kosovarepublic of kosovo qeveria vladagovernment ministria e financave ministarstvo za finansije ministry of finance medium term expenditure framework 202015 april, 2012.
Incidentally, in the budget 2012, the finance minister of government of india goi has proposed to introduce mtef for better financial planning and expenditure management. View homework help medium term expenditure framework. In most developing countries, the government prepares a medium term development plan that lays out the strategic priorities and key objectives for the country over a three to fiveyear period. Medium term expenditure framework along with fiscal responsibility laws, some lac countries have implemented medium term expenditure frameworks mtefs as a way of linking the budgetary process to broad fiscal policy goals beyond the annual budgetary cycle. Mediumterm expenditure framework statement laid before parliament as required under the fiscal. Draft report on medium term expenditure for department of. Vision 2030s medium term plan framework 12 differences in the frameworks 14 the medium term plan framework 15 gaps in the mtp framework for implementation of the sdgs 15 gaps in the mtp framework for implementation of agenda 2063 16 possible alignment challenges 18 1. Budget documentation201819adopted budgets02 local municipalitiesnc078 siyancuma medium term revenue and expenditure framework. Analyses of nigerias 2016 budget and medium term expenditure. Achieving medium term expenditure framework reform.
Mtefs typically span a period of three to five years, including the budgeted fiscal year, and combine prescriptive yearly ceilings with descriptive forward estimates. Medium term expenditure framework mtef seems to be the framework that best meets these criteria. This exercise however is almost always done independently of the annual budget process, and often results in a wish list of programs and activities which cannot be realistically achieved given the. Medium term strategic framework 20142019 south african. The effect of the medium term expenditure framework on the. Medium term expenditure framework mtef is intended to facilitate a number of important outcomes in the budgetary process including.
This research paper investigated the concept of mtef and its relationship with budget effectiveness in nigeria public sector. The korean government worked against the same challenge but succeeded in institutionalizing mtef into the budget process. Alignment of mtp with the medium term expenditure framework 18 2. Ideally it should be set within a macroeconomic framework and coordinated by a ministry of finance or its equivalent.
Mtef, budget and budgetary practices, ethiopia, finance cite this article as. The minister of budget and national planning, udoma udoma. This technical assistance report focuses on botswanas mediumterm expenditure framework mtef. Ministry of education nmtdp 2014 2017 page 6 mtef medium term expenditure framework nab national accreditation board nap national apprenticeship programme nbssi national board of small scale industries ncca national council for curriculum and assessment ncte national council for tertiary education ndp national development plan. Local municipalitieswc024 stellenbosch5 2 medium term revenue and expenditure framework resolution. Probably, proponents of medium term expenditure framework mtef process supported the introduction of performancefocused planning and budgeting because it would enhance local public accountability in the budget process. Mediumterm expenditure framework statement laid before parliament as required under the fiscal responsibility and budget management act, 2003 for 201718. Analyses of nigerias 2016 budget and medium term expenditure framework introduction on tuesday 22 december 2015, president muhammadu buhari presented the 2016 budget to the national assembly. The 20172019 medium term expenditure framework mtef 20172019 is the main document based on which the budget of the republic of kosovo is drafted. The federal executive council, fec, has approved the 20182020 medium term expenditure framework, mtef and the fiscal strategy paper, fsp. Budget documentation201819adopted budgets02 local municipalitiesnc078 siyancumamedium term revenue and expenditure framework. The mtef will provide a more explicit linkage between national development plan priorities and budget allocations by adopting a mediumterm budgeting horizon. By neglecting institutional and capacity considerations, medium.
Mediumterm budgetary framework european commission. Medium term expenditure and budgetary practices in ethiopia. Chapter two provides background on what constitutes a medium term expenditure framework, or mtef and what it aims to achieve. An mtef model based on a binding nominal expenditure ceiling. Described as the budget of change, the president first gave an overview of 2015 performance before providing the 2016 budget highlights. Spending priorities for the medium term expenditure framework period ahead are guided by the ndp and the mandate paper.