MTEF Case Studies
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Influences The MTEF rollout in Nicaragua can be considered a success largely as a result of the continued political support for fiscal reform in general and the MTEF in particular. Consecutive administrations with different political views regarding economic and social development have promoted the introduction and consolidation of the MTEF. In addition, donors have selected the MTEF as a critical reform and a focus for technical assistance on PFM modernization and budget support. In fact, all budget support matrixes have included a set of indicators and actions to strengthen the MTEF and support implementation. Another positive point is that the Nicaraguan MTEF has been recognized as good regional PFM practice, and neighboring countries have asked Nicaragua to share its MTEF experience.
Russia Table G.11 summarizes the case study of Russia, which reflects the information on MTEF implementation up to 2011.
Context Multiyear budgeting in Russia is an important component of a larger PFM reform agenda that has been under way for more than a decade. The government has undertaken several far-reaching reforms aimed at improving the predictability, effectiveness, and transparency of public resource management. These reforms constitute a significant shift from centralized budget management and toward a modern, performancebased budget system with a strong medium-term focus. Initial reforms focused on fiscal discipline and resource allocation. The current agenda emphasizes performance budgeting and efficiency of spending. A chronology of key PFM milestones in Russia is presented in table G.12.
Origins Budget Code amendments in 2007 introduced three-year budgets implementing part of the PFM reform strategy, Concept for Reforming the Budget Process in 2004–2006. Multiyear budgets were intended to improve fiscal planning and predictability of public spending and better align public spending with public policy priorities. The first multiyear budget covered 2008–10 at the federal level, including all federal ministries, agencies, and services. Since then, the federal budget and the budgets of extrabudgetary funds were authorized for the next budget year and a two-year planning period.