Prepared by Patrick Akatu.
The term “medium-term fiscal strategy (MTFS)” is also used in the literature.
One such principle that seeks to achieve improved levels of public savings is the “golden rule,” which requires that current expenditures be financed from revenue.
The description of an MTEF given here, while generally applicable, may be more representative of the practices in advanced economies than in African countries and other developing countries, where the main focus of reform efforts has been on achieving better linkage between sectoral and intersectoral spending priorities within the available resource envelope.
Phillipe Le Houerou and Robert Taliercio, “Medium-Term Expenditure Frameworks: From Concept to Practice—Preliminary Lessons for Africa,” World Bank, Africa Region Working Paper No. 28 (Washington: World Bank, 2002).
The investment spending programs are, however, reviewed periodically. At such reviews, new projects and programs are brought into the plan, existing projects modified, and implementation speeded up or delayed.
Noninvestment recurrent expenditure is defined recurrent expenditure other than recurrent outlays on education and health.