The Governance Brief: Linking Planning and Budgeting: The Medium Term Expenditure Framework (Issue 2)

Abstract

In most developing countries, the government prepares a medium term development plan that lays out the strategic priorities and key objectives for the country over a three- to five-year period. This exercise however is almost always done independently of the annual budget process, and often results in a wish list of programs and activities which cannot be realistically achieved given the finances of government. The plan thus becomes de facto more of an academic exercise rather than an effective instrument for promoting socio-economic development.