PI-16. Medium-term perspective in expenditure budgeting
Description
This indicator examines the extent to which expenditure budgets are developed for the medium term within explicit mediumterm budget expenditure ceilings. It also examines the extent to which annual budgets are derived from medium-term estimates and the degree of alignment between medium-term budget estimates and strategic plans. It contains four dimensions and uses the M2 (AV) method for aggregating dimension scores.
Dimensions and scoring
| Score | Minimum requirements for scores |
|---|---|
16.1. Medium-term expenditure estimates |
|
| A | The annual budget presents estimates of expenditure for the budget year and the two following fiscal years allocated by administrative, economic, and program (or functional) classification. |
| B | The annual budget presents estimates of expenditure for the budget year and the two following fiscal years allocated by administrative and economic classification. |
| C | The annual budget presents estimates of expenditure for the budget year and the two following fiscal years allocated by administrative or economic classification. |
| D | Performance is less than required for a C score. |
16.2. Medium-term expenditure ceilings |
|
| A | Aggregate and ministry-level expenditure ceilings for the budget year and the two following fiscal years are approved by government before the first budget circular is issued. |
| B | Aggregate expenditure ceilings for the budget year and the two following fiscal years and ministry-level ceilings for the budget year are approved by government before the first budget circular is issued. |
| C | Aggregate expenditure ceilings for the budget year and the two following fiscal years are approved by the government before the first budget circular is issued. |
| D | Performance is less than required for a C score. |
16.3. Alignment of strategic plans and medium-term budgets |
|
| A | Medium-term strategic plans are prepared and costed for most ministries. Most expenditure policy proposals in the approved medium-term budget estimates align with the strategic plans. |
| B | Medium-term strategic plans are prepared for the majority of ministries, and include cost information. The majority of expenditure policy proposals in the approved medium-term budget estimates align with the strategic plans. |
| C | Medium-term strategic plans are prepared for some ministries. Some expenditure policy proposals in the annual budget estimates align with the strategic plans. |
| D | Performance is less than required for a C score. |
16.4. Consistency of budgets with previous year’s estimates |
|
| A | The budget documents provide an explanation of all changes to expenditure estimates between the last medium-term budget and the current medium-term budget at the ministry level. |
| B | The budget documents provide an explanation of most changes to expenditure estimates between the second year of the last medium-term budget and the first year of the current medium-term budget at the ministry level. |
| C | The budget documents provide an explanation of some of the changes to expenditure estimates between the second year of the last medium-term budget and the first year of the current medium-term budget at the aggregate level. |
| D | Performance is less than required for a C score. |
