Download First Round Update 2013-14 * 2016-17

Medium Term Expenditure
Planning for Sustainable
Development.
Overview:
1. Purpose & Importance MTEF.
2. Targets of Government Expenditure
3. Budget & Planning Processes
– Linkages: making the link between policy, planning & budgeting.
– Guidelines: where to start.
4. Q & A.
“An MTEF is a comprehensive, government wide spending plan
that links policy priorities (in planning documents such as the
SDS or sector plans) to expenditure allocations in the Budget
documents, within the constraints of a fiscal framework - based
on macroeconomic and revenue forecasts - usually over a three
year forward planning period. A good MTEF should be the result
of an approach to budgeting that requires early policy
prioritisation, evaluation of competing policies and programs,
and a careful matching of current and medium-term plans with
available funding resources, following a disciplined process.”
World Bank, Budgeting and Budgetary Institutions, p.128
Purpose/Importance:
• It allows for strong links between Policy, Planning and Budgeting
• To set a framework to encourage efficiency in the allocation of
resources across Government.
• Projections of the cost of implementing government policies into the
future (over a 3 year period in Samoa).
Government Targets/Expenditure Allocations:
1. Limit budget deficit to 3.5% of GDP
2. Limit expenditures within 35% - 38% of GDP
3. Limit personnel costs within 40% - 45% of total expenditures
4. Limit debts to less than 50% of GDP
5. Increase NTR by 1%
Government Expenditure Targets:
• Economic; 10
Examples: Private Sector Agri/Business Project
Demographic Health Survey
• Social;
5
Examples: Samoa School Fee Grant Scheme
(Primary/Secondary)
Health Sector Program
• Infrastructure;
1
• Examples: National Broadband Highway
The Performance
Framework template can be
visualised as a hierarchy
SDS
Goals
Sectoral Goals
Outcomes
Why your ministry produces
outputs
Ministry Level Outcomes
Goods and Services (Outputs)
What your ministry produces
Linkages:
• Policy documents, Planning documents and the Budget Formulation
Performance
Framework
National
Plans/SDS
Budget
Document
Sector Plans
Corporate
Plans
Linkages:
• Where to Start?.
National
Plans/SDS
Performance
Framework
Sector Plans
Corporate
Plans
FA’AFETAI 