11.2.2: Fiscal Management
The long-term goal is to adhere to sound fiscal management practices by spending within the available financial resources. Other Information:
Good fiscal management is important to ensure that public resources are allocated and spent on priority areas. This will be
fundamental to achieve the targets and aspirations outlined in the MGDS. The central tool in fiscal management is the budgeting
process, which since 1995 has been based on medium term expenditure framework (MTEF). The MTEF entails an output-focused approach
based on costing of priority activities and projections of available resources. However, implementation of the MTEF has not
been satisfactory. There have been huge variations in terms of planned (approved) expenditures and actual expenditures. Unbudgeted
expenditures have exerted unnecessary pressures on the budget undermining the set priorities. Sector policies have remained
unaffordable and resources have ended up being spread too thinly across so many activities thereby making little or no impact.
This only shows lack of appreciation of resource constraints both at political and technical levels. It is imperative that
the situation be corrected to achieve the long-term goal... Medium-Term Expected Outcome: In the medium term, it is expected
that budget implementation will be improved.
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