Preparation of the medium-term fiscal framework

A MTFF covering all revenues and expenditures for a minimum of three years is adopted by the government

Review of the Medium-Term Fiscal Framework.

The MTFF is published before the annual budget bill is presented to the parliament

Review of the Medium-Term Fiscal Framework.

The government has established clear quantitative fiscal rules at least for the total levels of public debt and the deficit

review of the Medium-Term Fiscal Framework.

The fiscal rules for public debt and deficit are defined in a law with strict correction procedures

Review of legislation.

The MTFF includes quantitative fiscal targets that meet the fiscal rules (if any)

Review of the Medium-Term Fiscal Framework. in case there are no fiscal rules, it is sufficient that the MTFF includes quantitative targets for the two points. In case there are fiscal rules, it is also required that the fiscal targets meet the fiscal rules for the budget year and the following two fiscal years.

Credibility of the medium-term revenue forecasts (%)

Review of the Medium-Term Fiscal Framework and the Annual Financial Statements and/or Budget Execution Reports to get the forecasts and outturns for total revenues and total expenditures. The range to calculate the points is based on PEFA D score of PI-2 (p.28). points are allocated based on the variation (x) between the total revenues forecasted for the last fiscal year (Y) in the MTFF adopted in year Y-2 and the outturns for total revenue in year Y: • x > 15% = 0 points. • 2% < x ≤ 15% = linear function. • x ≤ 2% = 2.5 points.

Credibility of the medium-term expenditure forecasts (%)

Review of the Medium-Term Fiscal Framework and the Annual Financial Statements and/or Budget Execution Reports to get the forecasts and outturns for total revenues and total expenditures. The range to calculate the points is based on PEFA D score of PI-2 (p.28). points are allocated based on the variation (x) between the total expenditures forecasted for the last fiscal year (Y) in the MTFF adopted in year Y-2 and the outturns for total expenditure in year Y: • x > 15% = 0 points. • 2% < x ≤ 15% = linear function. • x ≤ 2% = 2.5 points.