Medim Term Budget Framework Seminar: background and objectives

2. Shared Concerns on the MTBF …… • MTBF is a critical tool in fiscal management. • MTBF reform efforts have delivered some incremental benefits. • However, reform implementation experience has been mixed & remains a major challenge – Issues in the design, sequencing and implementation. – Introduction of the reform proved difficult. – Benefits have not been sustained. • Strategies to move beyond MTFF is complex. 2

3. .. and have common expectations……. • Countries of the region are facing the same type of challenges. • All countries of the region have MTFF but are facing problems to move beyond. • One important issue affecting MTFF is the lack of fiscal discipline and budget credibility.

4. Theme 1: Introduction To MTBFs within Public Sector Budgeting • Concept and evolution of fiscal planning with the context of public sector budgeting reforms • Sharing Country specific reform experience: – Ghana in a Plenary Session. – Break Away Sessions with two groups of countries • Benefits • What has gone wrong? • Prerequisites. • Plenary on Prerequisites for MTBFs in Africa, – Chairpersons of Break Away Sessions share their conclusions. 4

5. Theme 2: Construction of Medium-Term Fiscal Framework And Aggregate Expenditure Ceiling - The Top-Down Process • Medium-term Fiscal Frameworks : Concept and Practices • Concept, Objectives and key Features. • Examples of best MTBF pratices. • Interactive Lecture on Construction of an Aggregate Expenditure Ceiling Constructing an MTBF. • Part 1 of Simulation exercise: Construction of an Aggregate Expenditure Ceiling. • Interactive Lecture on Allocating Ceilings to Sectors/Ministries/ economic categories. • Part 2 of Simulation exercise: Allocating Ceilings to Sectors/Ministries/ economic categories. 5

6. Theme 3: Sectoral and Ministerial Allocations : The Bottom-Up process • Construction of sector/ministerial – level budget expenditure projections. • Reconciling Sector based planning with budgeting – Strategic planning vs. financial programming – Integration of Aid into sector/ministry plans/ budgets. – Public Sector Investment programming – Medium-term program and performance budgeting – Case study of Gambia and plenary discussion • Part 2 of Simulation exercise: Constructing a ministerial medium-term expenditure estimates 6

7. Theme 4: Budget processes and Presentation - The Reconciliation Process. • Budgetary Institutions and Processes • Roles and responsibilities • Sequencing of decisions in the annual budget process. • Break Away Sessions- Budgetary Institutions and process • Strengthen and weakness • Areas of improvement to enhance MTBF • Plenary on MTBF Budget Documentation- including Budget Framework paper 7

8. Closing Session: Conclusion and Lesson Learnt • Role Play on Cabinet discussion of medium-term Budget proposal for Ministry of Education. • Reform priorities for improving medium-term fiscal and budget planning. • Evaluation of the course: – Feedback on areas of improvements, – Suggestions on how to develop a standard agenda and course materials for use in future courses. 8

9. THANK YOU 9