Budget Reform and the Medium Term Expenditure Framework

Martin Brownbridge, Giulio Federico and Florence Kuteesa

in Uganda's Economic Reforms

Published in print December 2009 | ISBN: 9780199556229
Published online February 2010 | e-ISBN: 9780191721823 | DOI:
Budget Reform and the Medium Term Expenditure Framework

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The initial budget reforms from 1992, aimed at establishing macroeconomic stability and credibility of the budget, focused on the short term. This chapter shows how, once these immediate targets were achieved, the finance and planning ministry gradually implemented a Medium Term Expenditure Framework. This was intended to facilitate a realignment of public expenditure in line with the political priorities set out in the Poverty Eradication Action Plan and to improve the predictability of public funds, while adhering to the aggregate resource envelope. The chapter examines trends in sector allocations, to assess whether the MTEF facilitated significant shifts, and looks at progress towards improving the predictability of the budget. It also discusses the pioneering measures taken to promote public and political consultation on the budget. Other reforms discussed include the virtual Poverty Action Fund, output oriented budgeting, fiscal transfers to local government, and public expenditure reviews.

Keywords: budget; medium term expenditure framework; predictability; allocations; consultation

Chapter.  11540 words.  Illustrated.

Subjects: Macroeconomics and Monetary Economics

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