Strength of the medium-term budget framework

The MTBF breaks down the fiscal aggregates of the MTFF into budget ceilings for each year for first-level budget organisations

Review of the MTBF.

In the last calendar year, budget organisations provided comprehensive inputs to the MTBF within the deadlines of the calendar

Review of the budget circular related to the submission of the MTEF. Comprehensive inputs require that the line ministry gives an elaborate account of expenditure developments and requests for new policy initiatives with justification. The information is triangulated with interviews with the MOF and line ministries.

The budget ceilings are formally adopted by the government before the MoF issues the instruction for annual budget preparation bill

Review of the MTBF.

The MTBF includes sector-based policy information to justify the ceilings

Review of the MTBF.

Variation rate from the aggregated ceilings for expenditure established in the MTBF in the annual budget bill (%)

SIGMA uses calculation sheets. For disaggregate ceilings, the five largest spending ministries are included in the calculation. points are allocated based on the average variation rate from the aggregated ceilings (x): • x > 2% = 0 points. • 0% < x ≤ 2% = linear function. • x = 0% = 3 points.

Variation rate from the disaggregated ceilings for first-level budget organisations established in the MTBF in the annual budget bill (%)

SIGMA uses calculation sheets. For disaggregate ceilings, the five largest spending ministries are included in the calculation. points are allocated based on the average variation rate from the disaggregated ceilings (x): • x > 2% = 0 points. • 0% < x ≤ 2% = linear function. • x = 0% = 3 points.

Consistency of ceilings at aggregate level between successive MTBFs. In case of deviations, these are documented and justified

SIGMA uses calculation sheets. For disaggregate ceilings, the five largest spending ministries are included in the calculation. Review of current and successive MTBFs to check whether the ceilings at the aggregated level are consistent across years. In case of deviations, these are documented and justified. Criterion 7: points are allocated based on the consistency of ceilings at aggregate level: • Between 0% and less than 0.5% of deviations or deviations are documented and justified = 3 points • Between 0.5% and less than 1% of deviations = 2 points • Between 1% and less than 2% of deviations = 1 point • 2% of deviations or more, or no ceilings are defined = 0 points

Consistency of ceilings at disaggregate level between successive MTBFs. In case of deviations, these are documented and justified

SIGMA uses calculation sheets. For disaggregate ceilings, the five largest spending ministries are included in the calculation. Review of current and successive MTBFs to check whether the ceilings at the disaggregated level are consistent across years. In case of deviations, these are documented and justified. Points are allocated based on the consistency at disaggregate level between successive MTBFs: • Between 0% and less than 0.5% of deviations, or deviations are documented and justified = 3 points • Between 0.5% and less than 1% of deviations = 2 points • Between 1% and less than 2% of deviations = 1 point • 2% of deviations or more, or no ceilings are defined = 0 points

The MoF has an operational system of spending reviews to inform re-allocation of funds across sectors and/or policies

An operational system of spending reviews includes the presence of a regulation with the country-specific approach to spending reviews and evidence of implementation of that regulation resulting in one or more reports in the last fiscal year.