Transcript Title content - European Training Foundation

Medium-Term expenditure
frameworks (MTEF)
Discussion note
PLF Salzburg
09-10/October/2013
MTEF
MTEF REFORMS IN THE WORLD
 2/3 of all countries
 Impact on budget management and fiscal performance – varies widely across countries
IMPROVING IMPACT OF PUBLIC POLICY
 Multi-year budgeting: government-wide strategic policy and expenditure framework
 Fiscal discipline: shows impact of current policies on government balance in the coming years
 Performance of public policies: efficient allocation of resources (within ceilings) to strategic
priorities between and within sectors
 Improved link of strategic budgeting with budget preparation process:
 Reconciliation of top-down (resource envelope) with bottom-up (strategies and resource needs)
 Shift of budgetary logic from “needs” to “available resources”- line ministries play a key role in
determining the effectiveness of MTEFs
MTEF stages, forms - gradual development
MTFF
- Former Yugoslav
Republic of
Macedonia
- Montenegro
- Serbia
MTBF
-
Albania
Kosovo
Turkey
MTPF
- … Turkey
HRD policies
LONG-TERM IMPACT
MULTIPLE INSTITUTIONS
•Predictable resource envelopes
over the medium-term
•Enhanced coordination
•Priority setting (within and btw
sectors)
• Collective negotiation
MTEF supports
Issues encountered frequently
-
Costing of sector strategies: numerous…but not all accompanied by
Action Plans and costing
-
Coverage: public funds; donors’ funds; other sources
-
Combination of multi-annual budgeting with the practises of annual
incremental budgeting
In several countries the multi-annual budget in reality coexists with
practises of annual budgeting
-
Ceilings: unclear links of multi-year estimates to annual budget
ceiling
-
Complexity of planning layers
EU: MTBF Index
http://ec.europa.eu/economy_ finance/db_ indicators/fiscal_ governance/framework/
MTBF survey
Index
- European Commission surveyed existing MTFBs
and current budgetary procedures across EU
Member States via several rounds of
questionnaires (2006, 2008, 2009, 2010 and
2011).
The index captures the quality of the MTBF
through five criteria:
-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). This
information is available in a database reflecting
the situation as of 2011.
(ii) connectedness btw the multi-annual
budgetary targets and preparation of annual
budget,
-Index builds on the database
(i) existence of a domestic medium-term
framework,
(iii) involvement of national parliaments in
preparation medium-term budgetary plans,
(iv) existence of coordination mechanisms
between general government layers prior
to setting the medium-term budgetary
targets for all government tiers
(v) monitoring and enforcement mechanisms
of multi annual budgetary targets
FRAME RIA – and MTEF
Examines synergistic
relationship:
• Between sector strategies
and wider national
national and public
investment plans
Assesses institutional capacities to;
• Link sector strategies with the
MTEF and budget
• Involve multiple stakeholders in
realistic strategy design,
• Cost sector policies
• Set policy priorities within ceilings
• Monitor budget implementation in
view of performance objectives
GUIDING QUESTIONS
• How can MTEFs support the shift towards better coordinated HRD
policies within a complex multi-ministry context?
• Role of Ministry leading the MTEF
• Actions coordinated among ministries (policy cycle, collective negotiation)
• Other stakeholders’ involvement (e.g..: civil society)
• How can RIA support improvements in the functioning and
effectiveness of the MTEF process with respect to the HRD sector?
• Line ministry level
• Ministry of Finance level
• Municipal / local level