Dimension 16.3. Timing, coverage and data requirements
|Time period||Coverage||Data requirements/calculation||Data sources|
|Last budget submitted to the legislature||BCG||
Dimension 16.4. Consistency of budgets with previous year’s estimates
DIMENSION MEASUREMENT GUIDANCE
16.4:1. This dimension assesses the extent to which the expenditure estimates in the last medium-term budget establish the basis for the current mediumterm budget. This will be the case if every expenditure variation between the corresponding years in each medium-term budget can be fully explained and quantified. If it is possible to reconcile and explain the differences, this shows that medium-term budgeting is operating as a dynamic process, with each subsequent budget building on its predecessor. It indicates that medium term planning is embedded in the preparation of budgets and provides a means to strengthen fiscal discipline beyond a single year. Explanations of changes from the previous year’s medium-term budget may include references to changes in macroeconomic conditions, revision of
important variables and coefficients, and changes to government policy and expenditure priorities.
16.4:2. Regarding the format to present changes, such information could be presented in the form of a table that highlights and explains the various changes between the forward years presented in the previous budget and the final budget submitted to the legislature including any changes in assumptions, economic parameters and major policy changes and adjustments. Such a table would be similar to that presented in table 14.1.
16.4:3. Further issues regarding the disclosure and approval of the medium-term framework are covered by other indicators such as the content of budget documentation, covered in PI-5, fiscal impact of policy changes in PI-15.1, approval by the legislature in PI-18, and public information on the budget in PI9.
Dimension 16.4. Scoring
|Score||Minimum requirements for scores|
|A||The budget documents provide an explanation of all changes to expenditure estimates between the last medium-term budget and the current medium-term budget at the ministry level|
|B||The budget documents provide an explanation of most changes to expenditure estimates between the second year of the last medium-term budget and the first year of the current medium-term budget at the ministry level.|
|C||The budget documents provide an explanation of some of the changes to expenditure estimates between the second year of the last medium-term budget and the first year of the current mediumterm budget at the aggregate level|
|D||Performance is less than required for a C score|
PEFA Handbook Volume 1: The PEFA Assessment Process – Planning, Managing and Using PEFA