Medium Term Expenditure Planning for Sustainable Development.

Overview: Purpose & Importance MTEF. Targets of Government Expenditure Budget & Planning Processes Linkages: making the link between policy, planning & budgeting. Guidelines: where to start. Q & A.

World Bank, Budgeting and Budgetary Institutions, p.128 “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: Limit budget deficit to 3.5% of GDP Limit expenditures within 35% - 38% of GDP Limit personnel costs within 40% - 45% of total expenditures Limit debts to less than 50% of GDP 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 Why your ministry produces outputs Sectoral Goals Outcomes Ministry Level Outcomes Goods and Services (Outputs) What your ministry produces

Policy documents, Planning documents and the Budget Formulation Linkages: Policy documents, Planning documents and the Budget Formulation Performance Framework National Plans/SDS Budget Document Corporate Plans Sector Plans

Linkages: Where to Start?. National Plans/SDS Performance Framework Sector Plans Corporate Plans

FA’AFETAI 