GoM to adopt MTEF Approach

6th September, 2010

The second phase of the Public Service Modernization (PSR2) will support the implementation of a strengthened Public Service Management System (PSMS). There are four main objectives of the PSMS:

  • To improve planning, resource allocation, monitoring, management and accounting systems and information provision so that accountability is clear and spending is transparent;
  • To focus resources on the core functions and policy priorities of Government and to deliver them efficiently and effectively;
  • To provide a robust basis for performance management to assess progress towards achieving our goals, and provide a better evidence base to make informed decisions; and
  • To build on gains from earlier changes such as the introduction of Corporate Planning and staff performance management.

As part of the approved Strengthening Public Service Management System proposals, the Government of Montserrat (GoM) will be introducing a Medium Term Expenditure Framework (MTEF) for the next financial year. moncler eu eyewear

The MTEF approach is considered best practice. A 2008 survey showed 90% of countries use MTEF.  So what exactly is an MTEF? An MTEF is a government strategic policy and expenditure framework. It is part of a transparent planning and budget process where government allocates resources to sectors, by priority and adds a forward looking (medium-term) dimension to the annual budget process.  It is a tool for good public expenditure management to support:

  • aggregate fiscal discipline;
  • allocation of resources in line with national priorities;
  • efficient and effective use of resources in implementation of priorities; and
  • minimisation of financial risk by providing a medium term view;

There are three elements to the MTEF approach, moncler designer daniel namely a Medium Term Fiscal Framework, a Medium Term Plan, and a Medium Term Budget.

So why has the Government of Montserrat decided on this approach? For one, despite high levels of budget predictability, GoM experiences fiscal instability and unplanned deficits, and has no structured means to address this problem. In essence the MTEF approach is the perfect way to combat our financial deficit.

There are several benefits to the MTEF approach including the existence of performance targets at all levels, and a single focal point for performance measurement, ugg outlet pa ohio review and reporting . The government will be able to prioritize and allocate resources efficiently. Budget limits would be clear and and all activities would be costed. Clarity of timetables, elements in the right order and consistent time horizons between documents/processes are additional benefits of the MTEF approach.

For more information about the Medium Term Expenditure Framework, please feel free to contact the Public Service Reform Unit at 491-9202..