Question 8

Does the Executive’s Budget Proposal or any supporting budget documentation present expenditure estimates for a multi-year period (at least two-years beyond the budget year) by program?
 * a. Yes, multi-year estimates for programs accounting for all expenditures are presented.
 * b. Yes, multi-year estimates for programs accounting for at least two-thirds of, but not all, expenditures are presented.
 * c. Yes, multi-year estimates for programs accounting for less than two-thirds of expenditures are presented.
 * d. No, multi-year estimates for programs are not presented.
 * e. Not applicable/other (please comment).

Guidelines
Budget decisions for the upcoming year can also affect the parameters of future budgets. It is therefore useful to estimate revenues and expenditures for multi-year periods, understanding that these estimates might be revised as circumstances change. Sometimes referred to as a Medium Term Expenditure Framework (MTEF), a three-year period — that is, the budget year plus two more years — is generally considered an appropriate horizon for budgeting and planning.

Question 8 asks if multi-year expenditure estimates are presented by program. There is no standard definition for the term “program,” and the meaning can vary from country to country. However, for the purposes of answering the questionnaire, researchers should understand the term “program” to mean any level of detail below an administrative unit, such as a ministry or department. For example, the Ministry of Health’s budget could be broken down into several subgroups, such as “primary health care,” “hospitals,” or “administration.” These subgroups should be considered programs even if they could be, but are not, broken down into smaller, more detailed units.

A note for francophone countries: “Program” level detail is sometimes referred to as le plan comptable or le plan comptable detaille. (These data are typically coded in the financial management database, following the chart of budgetary accounts, so that they can be organized by administrative and functional classification.)

To answer “a,” the Executive’s Budget Proposal or its supporting documentation must present expenditures for all individual programs, accounting for all expenditures, for at least two years beyond the budget year. To answer “b,” the programs shown individually in the Executive’s Budget Proposal or its supporting documentation must account for at least two-thirds of all expenditures over the multi-year period. A “c” answer applies if the Executive’s Budget Proposal or its supporting documentation presents multi-year estimates for programs that account for less than two-thirds of expenditures. Answer “d” applies if multi-year estimates are not presented by program.

1) "Other" categories
Watch out for aggregate categories, such as “other.” To receive an “a” answer, the “other” category has to be smaller than 3% of the total. If the “other” category is more than 3%, then the score should be “b.”

2) How should the term "program" be treated?
As the guidelines state, researchers should treat the term “program” as meaning any level of detail below an administrative unit. However, note that economic classification (e.g., “compensation”, “use of goods and services”, “consumption of fixed capital”, “interest”, “subsidies”, “grants”, “social benefits”, “other expenses”, etc.) below the administrative unit DOES NOT count. In addition, a sub-functional classification below a functional classification also does not count. In OBS 2019, for example, China released an Enacted Budget (see attached) that had sub-functional classifications within the functional classification of the budget. We did not count these sub-functional classifications as programs.

If you find a functional classification beneath an administrative classification, please bring it to the team.