This helps to reprioritise expenditure and make informed policy choices that are affordable in the medium term. The medium term expenditure framework mtef provides government with a tool to manage the tension between competing policy priorities and budget realities. The medium term expenditure framework mtef sets out threeyear spending plans of the national and provincial governments. Medium term expenditure frameworks world bank group. In the medium term, the overall macroeconomic objective will be to accelerate implementation of reforms as outlined in the economic stabilization and growth programme esgp and austerity measures announced by his excellency the president of. The mtef is made up of four elements that integrate with each other to cover every important aspect, from the macroeconomic and fiscalperspectives to the policy. Preliminary lessons from africa february 2002 africa region working paper series no. The national medium term development policy framework nmtdpf contains four 4 policy objectives that are relevant to the ministry of planning. In 19989, the medium term expenditure framework was introduced in south africa in order to encourage the participative approach in budgeting process, transparency, accountability and policybudgeting coordination. Where do i find the medium term expenditure framework. Compensation of employees expenditure ceilings are contained in the mtec submission workbook. The mtef is used as a planning tool for projecting the budget burden for four years, based. For further information, refer to the guidelines for costing and budgeting for compensation of employees. For the preparation of expenditure estimates for the 2020 medium term expenditure framework mtef4.
In the financial year 20152016, the estimated recurrent. Medium term expenditure framework circular 201516 1. Ideally it should be set within a macroeconomic framework and coordinated by a ministry of finance or its equivalent. Medium term expenditure framework 20192021 summarizes these key government priorities in the declaration of medium term priorities and then in the relevant chapters, covering all budget sectors, describing the approach how funds for the implementation of identified reforms will be provided through the budget process.
The mtef medium term expenditure framework is defined as an approach designed specially to link planning, which has a medium term outlook, with the annual budget, and, as a consequence, to link budgetary expenditure more systematically with. 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. Draft medium term budget 202021 202223 68 table sa4. Under the amended frbm act, the government seeks to. The medium term expenditure framework mtef 201620181 represents the main document based on which the draft annual budget is prepared. To facilitate this development, the medium term expenditure framework mtef was introduced in 2006. The effect of the medium term expenditure framework on the. Ensure that the coordinated programme cp influences activities of government institutions and are in line with the national medium term development policy framework. Medium term expenditure framework free essay example. The main purpose of the mtef is to provide an analysis based on the country. Medium term expenditure framework the ministry of finance and economic development mofed is introducing an integrated version of a medium term expenditure framework mtef. Alignment of mtp with the medium term expenditure framework 18 2. Medium term strategic framework 20142019 south african. Section 11 of the fiscal responsibility act fra, 2007 mandates the preparation of the medium term expenditure framework.
The topdown resource envelop means the fiscal targets and estimates of revenue and. This case study provides an inside story of mediumterm expenditure framework reform in the. Medium term budgetary framework issues 497 costs with available resourcesin the context of the annual budget process 1998a. For the preparation of expenditure estimates for the 2020 medium term expenditure framework. The amendment of the frbm act 2003 which, inter alia, incorporates a medium term expenditure framework statement mefs is a significant initiative taken in 2012 towards fiscal consolidation.
As discussed in the previous section, the catalyst for adopting a medium term budget framework in sweden was the introduction of fiscal targets, in the shape of a threeyear rolling expenditure ceiling for the central government and a surplus target for the general governme nt sector. This version includes a programmebased budgeting component and a threeyear rolling budget presentation. Medium term expenditure and budgetary practices in ethiopia. The main purpose of the mtef is to provide an analysis based on the countrys macroeconomic environment, thus setting the. Medium term expenditure framework and 2019 budget green paper ministry of finance august, 2018. Eliminate effective revenue deficit which excludes grants for creation of capital assets. The inadequacy of annual budget system has in recent times forced many countries government into search for a more appropriate framework that supports the reform of policy makers degree of planning, improves inter and intrasectoral. The medium term expenditure framework, also referredto as the multiannual budget, is often included as an annex to a countrys annual budget law. In 200304, sector reports have been prepared to guide policy and resource allocation and draft submissions were available in time for the budget guidelines preparation. Pdf the experience of medium term expenditure framework. The medium term expenditure framework mtef provides. Mediumterm expenditure framework statement laid before parliament as required under the fiscal. The 20172019 medium term expenditure framework mtef 20172019 is the main document based on which the budget of the republic of kosovo is drafted.
Government with a tool to manage the tension between competing policy priorities and budget. However, in terms of implementation in those countries, the medium term expenditure framework continues to present a significant challenge within the budget process. Medium term budgetary framework issues, challenges and. The recurrent expenditure comprises of personnel emolument and operation and maintenance. Medium term expenditure frameworks mtefs are receiving renewed attention in the context of the formulation of. It provides firm estimates for the first year with indicative estimates for the following two years. Source of funding the capital budget projects of the municipality have been funded as follows over the years. Assessment of the mtef in ghana john short reprim, uk overseas development institute london may 2003 this study forms part of a multicountry study assessing the design and application of the medium term expenditure framework mtef as a tool for poverty reduction in selected african countries.
The budget becomes the first year of the medium term framework when it is approved, the budget authorizes expenditure for the next year, in contrast to mtef which only indicates expenditure for future. Where do i find the medium term expenditure framework mtef. To facilitate this development, the mediumterm expenditure framework mtef was introduced in 2006. Expenditure priorities using development goals identified in vision 2030, national development plan 2 mof prepares macroeconomic and fiscal framework mff and medium term budget framework mtbf after direction from the budget policy commit tee sections 1. Medium term expenditure framework is a threeyear rolling budget in which the estimates of expenditure on development programmes and projects under each vote are indicated. The introduction of the pfma also encourages effective financial management, transparency. Conceptually, mtefs are the ideal tool for translating prsps into public expenditure programmes within a coherent multiyear macroeconomic and fiscal framework. Mediumterm expenditure frameworks mtefs help centralfederal government organisations to adopt a medium term budgetary perspective rather than solely.
The statement has to be laid in the session immediately following the session of the parliament in which the budget has been presented. This research paper investigated the concept of mtef and its relationship with budget. It outlines the spending of national and provincial government, and the budget allocations to local government. Medium term expenditure frameworks mtefs are receiving renewed attention in the context of the formulation of poverty reduction strategy papers prsps. 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 revenue and expenditure framework lim476 fetakgomotubatse supporting table sa26 consolidated budgeted monthly revenue and expenditure municipal vote description ref r thousand july august sept. Fixed expenditure frameworks lead to a strict separation of expenditure and revenue planning automatic stabilisation. The mtef statement sets a threeyear rolling target for the expenditure.
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