The Crime Desk: The government is formulating a budget using the medium-term budget framework system to ensure the achievement of the government’s strategic goals and objectives and to increase the efficiency and effectiveness of government expenditure. To this end, the Ministry of Finance has ordered that the budget frameworks of all ministries, divisions, and other institutions be sent in one go to the relevant sub-divisions of the Finance Department and the Planning Commission’s Activities Division, General Economics Division, and relevant sector divisions by January 23 of next year.
A circular was issued on Wednesday regarding the revision and updating of the medium-term budget frameworks of ministries, divisions, and other institutions. This order has been given there.
The circular states that if more than one sector or division is involved in the annual development program included in the development budget of a ministry, division, and other institution, then the revised or updated budget framework should be sent to all the relevant sectors or divisions.
All the guidelines of the circular should be followed properly, and the budget framework, revenue, and receipts and expenditure estimates and projections should be updated or formulated and sent to the Finance Department and Planning Commission by January 23.
The budget being prepared under the medium-term budget framework method is divided into three main stages. These include the strategic stage, estimate stage, and budget approval stage. In the first stage of the strategic stage, administrative ministries, departments, and other institutions have to update the existing medium-term budget framework.
The main objective of amending or updating the budget framework of ministries, departments, and other institutions is to establish a link between budget allocation and strategic policies and priorities reflected in the basic policy-making documents of the government. In addition, to further strengthen the link between budget allocation and the performance of ministries/departments and subordinate offices/agencies and to prepare a realistic expenditure plan for the concerned ministries/departments and other institutions based on the resources available in the medium term.
The purpose of setting the initial revenue and receipt targets is to give an idea of the medium-term revenue collection targets by various ministries/departments/other institutions. The purpose of setting the initial possible expenditure limit is to give an advance idea of the amount of resources that the ministry/department/other institutions can receive in the medium term and to prepare an integrated budget framework containing operational and development expenditure within the given expenditure limit.
