MTBF documents are produced annually in order to place the budget in a medium-term perspective.
MTBF is developed in two stages:
- The first stage is aimed at ensuring aggregate fiscal discipline and the sustainability of the budget policies, through preparing a medium-term fiscal framework and a medium-term revenue framework. The MTBF should be based on realistic revenue forecasts. Its preparation should involve the Sections responsible for macro-economic management, budgeting and revenue management.
- The second stage focuses on intersectoral resource allocation, through preparing an MTBF consisting of future expenditure estimates aggregated by sector or ministry.
In Moldova, the Medium Term Budget Framework – is a document establishing the fiscal policy objectives and determining the framework of resources and expenditures of the National Public Budget and its components in a three-years period.
Law no. 181 of 25 July 2014 on public finance and fiscal responsibility guides the MTBF preparation and approval processes.
Articles 48 and 49 require that:
The Government approves, annually, according to the budget calendar, the MTBF and submits it to the Parliament for notification.
The MTBF is elaborated by the Ministry of Finance, jointly with other responsible public authorities, in accordance with the fiscal principles and rules established by this law.
The MTBF framework includes:
- the revenue framework;
- fiscal policy;
- the macro-budgetary framework; and
- the expenditure framework.
