Professional Documents
Culture Documents
Bernard Myers
The views expressed in this presentation are the views of the author and do not necessarily reflect the views or policies of the Asian Development
Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee
the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not
necessarily be consistent with ADB official terms.
Global experience and impact
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WB Study “Beyond the Annual Budget”
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MTEF IS IN USE GLOBALLY – BUT IN DIFFERENT FORMS
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WHAT FORMS DO MTEFS TAKE?
Medium-Term Fiscal Framework
(MTFF)
• Resource envelope
• Agency ceilings
• Top down, input based
Medium-Term Budget Framework (MTBF)
• National and sector strategies, forward
estimates
• Reconciliation with MTFF, agency/program
ceilings
• Top down and bottom up, primarily input
based
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Key Objectives and Components
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MTEF OBJECTIVES
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MTEF OBJECTIVES
• When executed well, the MTEF helps government to extend its
budgeting horizon and to consider the resource availability over the
entire MTEF period when making policy.
• Budget decisions, influenced by the political process, tend to be short-term
in focus. Sound policy decisions, however, require a medium term focus
• It enhances the likelihood that policy decisions take into account the
longer term cost implications, especially of capital investment
• Procedures for updating the baseline projections and rolling the MTEF
forward
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CONSIDERATIONS FOR THE MACRO-FISCAL FRAMEWORK
• Take into account fiscal policy objectives and their impact on the
economy (real and monetary sector)
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DEVELOPING THE MTEF BASELINE (1)
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DEVELOPING THE MTEF BASELINE (2)
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ESTABLISHING POLICY PRIORITIES AND SECTOR CEILINGS
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LINK BETWEEN THE MTEF AND ANNUAL BUDGET
• No tracking of policy commitments made for the outer years of the MTEF
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ENABLING CONDITIONS FOR AN EFFECTIVE MTEF (1)
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Insights from the PEFA framework
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PEFA INDICATOR 16: KEY BENCHMARKS (1)
A The annual budget presents estimates of expenditure for the budget year
and the two following fiscal years allocated by administrative, economic,
and program (or functional) classification.
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PEFA INDICATOR 16 - KEY BENCHMARKS (2)
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PEFA INDICATOR 15: FISCAL STRATEGY
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TWO COMPLEMENTARY
INSTRUMENTS:
FISCAL STRATEGY
PAPER
25 Presentation Title
FACILITATING HI-LEVEL POLICY DIALOGUE
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THANK YOU
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