Medium Term Expenditure Framework (MTEF), Performance Management and Fiscal Transparency.
Medium Term Expenditure Framework (MTEF), Performance Management and Fiscal Transparency
Proper construction and control of expenditure plans and budgets is central to organisations and governments. This requires a comprehensive financial planning and approval framework; consistent and rigorous processes for constructing plans and budgets, both capital and revenue; sound methodologies for assessing the financial impact of proposed expenditure; compatibility with other management and performance data, and a control system that sets clear responsibilities and produces prompt and accurate monitoring information on performance against budgets. Budgeting and Budgetary Control is a rational means of allocating and controlling scarce resources of any organisation towards the attainment of set goals and objectives.
Moving towards a Medium-Term Expenditure Framework (MTEF) involves building upon the current budget and policy decision-making process, with an aim to overcome some of the current constraints in the process and improve public expenditure decisions and management. A well thought out MTEF tries to integrate policy with resource allocation decisions in a multi-year context to better reflect the effects of decisions on public finances, andgenerally lead to improved policy decisions. It also involves structuring the decision-making process to encourage economy efficiency and effectiveness (the 3Es), and focus spending and policy onattaining the government’s objectives. So, a MTEF could be said to be about strategic allocation of resources in line with government priorities and the opportunity costs of decisions.
This training will explore planning, budgeting, the stages of a MTEF process, the role of some of the key institutions in the MTEF process, and references to international best practices to illustrate points and have a discourse using a few examples of successful countries that have implemented MTEF.