The document outlines Government’s economic agenda, fiscal policies, as well as projected
incomes and expenditures for the period 2018-2020. Section 11 of the Fiscal Responsibility
Act (FRA), 2007 mandates the preparation of the Medium-Term Expenditure Framework
(MTEF) and Fiscal Strategy Paper (FSP). The MTEF/FSP is composed of the macroeconomic
framework, fiscal strategy and medium term fiscal framework.
The macroeconomic framework provides analysis of key global and domestic macroeconomic trends of recent years, fiscal effects, policy responses, future policy direction and macroeconomic projections and assumptions underpinning the medium term fiscal framework.
The MTEF/FSP communicates the economic context in which the forthcoming budget will be presented, along with fiscal policy objectives and spending priorities of the government over the three-year period. It also details the plans for achieving government’s defined objectives, and highlights the key assumptions underpinning revenue projections and fiscal targets as well as potential fiscal risks over the medium term.
Furthermore, it articulates the nature of Federal Government’s debt liabilities, their fiscal significance, and measures aimed at reducing them. The MTEF also provides the basis for the preparation of revenue and expenditure estimates for the Annual Federal Budget. Hence, the MTEF reflects efforts towards multi-year perspective in budgeting to allocate public resources among competing needs on a rolling basis over the medium term. The 2018-20 MTEF/FSP is drawn from the Economic Recovery and Growth Plan (ERGP) 2017-2020
The 2018-2020 fiscal strategy of Government is focused on broadening revenue receipts by identifying and plugging revenue leakages, improving the efficiency and quality of capital spending, greater emphasis on critical infrastructure, rationalisation of recurrent expenditure, and gradual fiscal consolidation to maintain the fiscal deficit below 3% of GDP as prescribed by the FRA, 2007. The key thrust of the 2018-2020 MTEF and FSP are in line with the goals of the present Administration as articulated in the ERGP 2017-2020.
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The macroeconomic framework provides analysis of key global and domestic macroeconomic trends of recent years, fiscal effects, policy responses, future policy direction and macroeconomic projections and assumptions underpinning the medium term fiscal framework.
The MTEF/FSP communicates the economic context in which the forthcoming budget will be presented, along with fiscal policy objectives and spending priorities of the government over the three-year period. It also details the plans for achieving government’s defined objectives, and highlights the key assumptions underpinning revenue projections and fiscal targets as well as potential fiscal risks over the medium term.
Furthermore, it articulates the nature of Federal Government’s debt liabilities, their fiscal significance, and measures aimed at reducing them. The MTEF also provides the basis for the preparation of revenue and expenditure estimates for the Annual Federal Budget. Hence, the MTEF reflects efforts towards multi-year perspective in budgeting to allocate public resources among competing needs on a rolling basis over the medium term. The 2018-20 MTEF/FSP is drawn from the Economic Recovery and Growth Plan (ERGP) 2017-2020
The 2018-2020 fiscal strategy of Government is focused on broadening revenue receipts by identifying and plugging revenue leakages, improving the efficiency and quality of capital spending, greater emphasis on critical infrastructure, rationalisation of recurrent expenditure, and gradual fiscal consolidation to maintain the fiscal deficit below 3% of GDP as prescribed by the FRA, 2007. The key thrust of the 2018-2020 MTEF and FSP are in line with the goals of the present Administration as articulated in the ERGP 2017-2020.
Read more here