Developing a fully-fledged medium-term fiscal framework (MTF) that explicitly takes into account the level and nature of resource revenues and use it to frame the annual budgets. The MTF should include a specific quantitative path of fiscal consolidation at the level of both the overall and non-resource balances, and make adequate provisions for contingencies. Until the BoL develops further its set of monetary management tools, the MTF should continue to envisage an annual reduction in the domestic financing requirements to help control demand pressures….
The uncertainty surrounding resource revenues in general, and the finite nature of mineral revenues in particular, also argue in favor of a prudent use of such resources. It also underscores the need for making spending decisions on the basis of a medium term fiscal framework to take account of intergenerational considerations.
In another report;
Developing an integrated medium-term fiscal framework. The authorities agree that expenditure decisions need to be made in a multiyear context. Such a framework should account not only for the volatile nature and uncertainties associated with resource revenues, but should align expenditures to the priorities of the National Socio-economic Development Plan (NSEDP). It is important that future budgets include this type of framework.
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