Problem:
Programme-Based Budgeting (PBB) seeks to enhance expenditure efficiency and effectiveness by systematically linking funding to results, making employ of performance information to accomplish that linkage. Good expenditure prioritization is specifically indispensable when the Government face new and unexpected challenges which need substantial expenditure responses against the background of limited internal and external resources. PBB is therefore essential about expenditure choices and these choices are frequently tough. In 2008/09, a fully-fledged PBB embedded in a 3year Medium Term Expenditure Framework (MTEF) was implemented by Government of Mauritius. This formed the basis for appropriation by National Assembly and replaced the traditional line-item budget. The preparation of budget estimates under MTEF now involves matching Ministries/Departments requirements with total resources, based upon the entire priorities.
Required:
1. Illustrate what you understand by the term medium term expenditure framework (MTEF) in preparation of a programme based budgeting.
2. What are the objectives and aims of MTEF?
3. Recognize and discuss the different steps which are involved in preparation of a MTEF.