The MTEF Sector Report is a reporting and bidding document that provides a backward and forward-looking medium-term view on sector programs (sector performance review and program proposals) and budgets (sector past financial performance and future resource bids) set against the indicative resource ceilings proposed in the CBROP. The Medium-Term Expenditure Framework (MTEF) – a three-year outlook of government revenue and expenditure – is expected to connect the annual budgeting and spending (service delivery) to the medium and long-term plans of the county governments. While every step of the budget process maintains the three-year outlook (from the ADP to the Budget Estimates for year N also show columns with estimates for years N+1 and N+2), this MTEF perspective is particularly important when preparing the County Fiscal Strategy Paper (CFSP), which translates policy priorities into resource allocations (ceilings) for sectors and programmes for the next three years.
In preparation for the CFSP, each sector convenes to prepare a report that summarizes the spending and progress made on the sector programmes and sets the expenditure (and revenue) projections for the following three years. MTEF Sector reports are then used by sector stakeholders to engage with the County Executive Committee and the County Assembly to promote adequate funding of their priority programmes. MTEF Sector reports are prepared
Linkages
Upstream: Budget Preparation Circular, QPRs, APR, ADP, CBROP
Downstream: CFSP (sector and program ceilings), Budget Estimates
Description
Under the guidance and coordination of County Finance and Economic Planning, Departments convene their Sector Working Groups to review past programmatic and financial performance against targets, highlighting reasons for positive and negative variations. Based on past performance review and existing and future priorities SWGs agree on adjustments needed to their programmes and respective financial projections. Draft Sector Reports are then published and publicized to inform public sector hearings. Public inputs and feedback are then consolidated into final Sector Reports that will help the sector make the case for increased/decreased funding allocation and will guide the distribution of funding across sector programmes (ceilings) for the CFSP.
For a more detailed description, follow this link: MTEF Sector Report - step by step
Resources
Laws and Regulations
Public Finance Management Regulations, 2015 - section 30
Guidelines and Tools
County Budget Operational Manual, The National Treasury, 2014
County X – Agriculture Sector Performance Review Format
