Title:
Moving to a Medium Term Budget Framework
Moving to a Medium Term Budget Framework
Start Date:
July 2006
July 2006
Completion Date:
August 2011
August 2011
Client(s):
Government of Pakistan
Government of Pakistan
Funder(s):
DFID Pakistan
DFID Pakistan
Location:
Pakistan, Southern Asia,
Pakistan, Southern Asia,
Key Contact:
Stephen Akroyd
Stephen Akroyd
Summary:
OPM is implementing the Government of Pakistan’s Medium-Term Budgetary Framework (MTBF). The £5 million MTBF project is transforming budgetary systems in the central ministries of government responsible for budgetary management as well as in individual line ministries responsible for sector spending and service delivery. The MTBF is introducing a system of public expenditure management that supports the alignment of spending with national policy priorities and that defines expenditures in terms of budgetary outputs and outcomes.
Following an initial piloting phase, the MTBF approach has been adopted across the whole of the Federal Government since budget year 2009/10, with each line ministry now preparing medium-term budget estimates with defined outputs and outcomes.
An OPM team based in the federal Ministry of Finance is supporting the rolling out of the MTBF through technical assistance and capacity-building across the following areas:
• Responsibility for MTBF at the top levels of the government. The passing of a cabinet decision in January 2009 formally adopted the MTBF for implementation across all federal ministries;
• Improved fiscal discipline. The project has provided support through the development of a fully operational Financial Programming Framework and introduction of the Budget Strategy Paper as part of the budget preparation process.
• Improved resource allocation. The project has introduced a formal and institutionalised process for the setting of top-down indicative budget ceilings in line with government priorities set at the highest level (Cabinet);
• Improved efficiency and effectiveness of public spending. The adoption of a results-oriented budgeting approach, making transparent for the first time the results which are expected to be achieved through the allocation of public funds through each division of every ministry; and
• Effective IT systems for budgeting and financial management. The establishment and constant updating of a fully enabled dedicated software package, the Financial Management Application, to support federal ministries coming into the MTBF process, together with training for all federal ministries.
Following an initial piloting phase, the MTBF approach has been adopted across the whole of the Federal Government since budget year 2009/10, with each line ministry now preparing medium-term budget estimates with defined outputs and outcomes.
An OPM team based in the federal Ministry of Finance is supporting the rolling out of the MTBF through technical assistance and capacity-building across the following areas:
• Responsibility for MTBF at the top levels of the government. The passing of a cabinet decision in January 2009 formally adopted the MTBF for implementation across all federal ministries;
• Improved fiscal discipline. The project has provided support through the development of a fully operational Financial Programming Framework and introduction of the Budget Strategy Paper as part of the budget preparation process.
• Improved resource allocation. The project has introduced a formal and institutionalised process for the setting of top-down indicative budget ceilings in line with government priorities set at the highest level (Cabinet);
• Improved efficiency and effectiveness of public spending. The adoption of a results-oriented budgeting approach, making transparent for the first time the results which are expected to be achieved through the allocation of public funds through each division of every ministry; and
• Effective IT systems for budgeting and financial management. The establishment and constant updating of a fully enabled dedicated software package, the Financial Management Application, to support federal ministries coming into the MTBF process, together with training for all federal ministries.
