Medium- Term Expenditure Framework of Government (in Persian)

Mohammad Kordbache ()
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Mohammad Kordbache: Iran

The Journal of Planning and Budgeting (٠صلنامه برنامه ریزی و بودجه), 2007, vol. 11, issue 6, 33-69

Abstract: Financial management systems follow triple goals of financial stability and discipline, strategic allocation of resources and operational efficiency. These triple goals are known as triple framework. Medium Term Expenditure Framework (MTEF) of government is a process taken in order to achieve the triple goals mentioned in many countries over the world during recent years. In this process, the government and the organization in charge of planning and budgeting forge lawful agreements on allocating public resources on the basis of strategic priorities while considering financial discipline. This paper introduces the characteristics of Medium-Term Expenditure Framework (MTEF) of government as well as the experiences of some countries. The last part of the paper is a recommendation on the application of this framework in Iran. Since performance-based budgeting has started in 2006 in Iran and as there is a close relationship between performance-based budgeting and MTEF, it is very crucial to use this recommended framework as soon as possible. Although the recommendation in the last part of the paper is offered for Irans 2007-2008 budget, as far as the nature of this recommendation is concerned, it could be considered for the future years as well.

Date: 2007
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