MTEF Case Studies
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MoF used to be responsible for developing sector strategies and expenditure plans, this role is now shared with the Department of Strategy and Donor Coordination in the Council of Ministers.
Design The MTEF is fully integrated with the budget cycle and covers a threeyear period. The rolling framework is revised and updated annually during the first half of each year as an integral part of the annual budget planning cycle. Expenditure ceilings are fixed for three years. The MTEF covers both current and capital expenditure, including public investment projects financed from external sources. The MTEF now covers all spending agencies and is disaggregated by sector. A revised budget calendar was developed to emphasize the role of spending agencies in preparing the MTEF. The MTEF includes the macro-fiscal framework, sector expenditure strategies, and three-year central and sector expenditure plans. The introduction of the MTEF signaled the government’s intention to move toward a more comprehensive approach to public expenditure planning, in which public investment requirements are considered part of broader sector and ministry expenditure programs. The MoF sets sector and program ceilings, and spending agencies prepare detailed budget estimates in line with program ceilings. In-year reallocation between programs is possible up to 10 percent of annual program allocations. Reallocations must be approved by the Council of Ministers, except in the case of capital projects, for which approval of the minister of finance is required. Reallocations are reconciled when medium-term plans are revised as part of the annual budget process. A contingency reserve of up to 3 percent of the total value of approved funds can only be used for financing unusual expenditures not foreseen in the budget preparation phase, and expenditures must be approved by the Council of Ministers. Budget allocations do not carry over from one year to the next, unless specifically stipulated in advance.
Implementation The MoF takes the lead in preparing the MTEF. The policies and strategies identified in the GPRS and NSDI influence expenditure priorities identified in the MTEF as well as the choice of sectors for more detailed expenditure analysis in future cycles. Bottom-up budget requests are coordinated through a participatory process involving an MTEF steering committee and working group as well as sector technical working groups.