Role of Medium-Term Budget Framework (MTBF) in accomplishing Public Financial Management (PFM) Goals

Abstract

MTBFs generally cover the preparation, execution, and monitoring of multiannual budget plans and encompass expenditure and revenue predictions. Overall, a well-designed MTBF reflects the impact of past budgetary obligations and the future cost of new policy measures. It is explained by the Ministry of Finance, jointly with other responsible public authorities, in accordance with this law's budgetary-fiscal principles and rules. The core objective of public financial management is to expand citizens' lives through better organization of public money. Government Financial Management Information System (GFMIS) has been established to fulfil global standards to improve the quality of PFM. Strong MTBFs can efficiently complement through their multi-annual focus the introduction of other institutional reforms such as an expenditure rule or top-down budgeting.

Keywords: Medium-Term Budget, Public Financial Management, Budget, Framework, Economic Growth

JEL Classification: A11, A20, E42, E52, E61, E62, F02, F33, F38, F53, F63, F68, K33, K00, O23, O47, P44, Z18