Publication: Common Practices in Setting Expenditure Ceilings within National Budgets
Date
2013-01
ISSN
Published
2013-01
Author(s)
Abstract
Developing a national budget has always
entailed a complex set of negotiations between national
Government priorities, line ministry priorities, and a
national funding envelope. This note explains how to
introduce a medium term horizon into a government’s
budgeting process, including the key steps involved. It
provides guidance on setting aggregate and line ministry
ceilings, reviewing experiences from countries with
extensive experience of ceilings (for example, Finland, the
Netherlands, Sweden, South Korea, Indonesia, Brazil,
Australia, and Canada, among others), as well as those that
have more recently adopted them. There is no one right way
to set expenditure ceilings. Countries tailor expenditure
ceilings to meet their specific needs, budget challenges,
and capacity constraints. This note presents an iterative
approach - starting from annual ceilings and gradually
moving toward a medium-term expenditure framework - allowing
for procedural, institutional, and organizational learning
and adaptation along the way.
Citation
“Dorotinsky, William; Watkins, Joanna. 2013. Common Practices in Setting Expenditure Ceilings within National Budgets. GET Note;. © World Bank, Washington, DC. http://hdl.handle.net/10986/25491 License: CC BY 3.0 IGO.”