What is Medium Term expenditure Framework?

What is Medium Term expenditure Framework?

The Medium Term Expenditure Framework (MTEF) sets out three-year spending plans of the national and provincial governments. It aims to ensure that budgets reflect Government’s social and economic priorities and give substance to Government’s reconstruction and development commitments.

Who prepares medium term expenditure framework?

The Ministry of Finance
The Ministry of Finance prepares the medium-term fiscal outlook presented in the five-year plan.

What are the components of MTEF?

According to the World Bank’s Public Expenditure Management Handbook (1998), “The MTEF consists of a top-down resource envelope, a bottom-up estimation of the current and medium-term costs of existing policy and, ultimately, the matching of these costs with available resources… in the context of the annual budget …

What is MTEF in South Africa?

The Medium Term Expenditure Framework (MTEF) provides Government with a tool to manage the tension between competing policy priorities and budget realities. This helps to reprioritise expenditure and make informed policy choices that are affordable in the medium term. But spending alone cannot deliver services.

What are the challenges of MTEF?

Where the MTEF has been introduced, two challenges have to be met:

• aligning measurement and control instruments at the political level (including PRSP) and operational level (budget);
• using the MTEF as a policy discussion tool within and outside government.

Is MTEF a budgetary process?

MTEF is a transparent planning and budget formulation process within which the Cabinet and central agencies establish credible contracts for allocating public resources to their strategic priorities while ensuring overall fiscal discipline.

Is MTEF budgeting approach?

Abstract: Medium Term Expenditure Framework (MTEF) has replaced the traditional annual approach to budgeting in most Sub-Saharan African countries. Ghana and Nigeria adopted and implemented it in 1996 and 2009 respectively.

Is MTEF a budgetary approach?

Is MTEF a budgeting approach?

Is Medium Term Expenditure Framework a budgeting approach?

An MTEF is a structured approach to integrating fiscal policy and budgeting over a multi-year horizon. Aggregate fiscal forecasts are linked to medium-term budget estimates by ministries, reflecting existing government policies.

What is medium term sector strategy?

A medium-term sector strategy presents policy priorities or strategic objectives, defines activities and proposes a budget to achieve these. Medium-term sector strategies help States to produce annual budgets that are strategic, realistic and forward looking.

What is Medium Term expenditure Framework Philippines?

The government of the Philippines has used the Medium-Term Expenditure Framework (MTEF) since 2007, preparing a three-year medium-term budget every year on a rolling basis (Illustrated in stages 5 to 9 in Figure 4). The Department of Budget Management (DBM) manages the process of medium-term budgeting along with NEDA.