AVERAGE TERM EXPENDITURE FRAMEWORK – AN EFICIENT TOOL FOR BUDGET PLANNING

Galina ULIAN, Tatiana VIŞANU Universitatea de Stat din Moldova

Abstract

The budget is both an economic and financial management tool, but also an implicit political statement. The main cause of poor performance budgeting in the world is often the weak correlation between these two components. The provision of this connection is a priority of the current budgetary reform promoted in many countries of the world. MTEF is one of the modern budget planning tools that attempt to provide this link by medium-term budget planning, based on public policies. Thus, the article aims to analyze the MTEF reform in the world and the appropriateness of this reform in Republic of Moldova. Keywords: budget, budget planning, MTEF, MTBF, MTFF, aggregate fiscal discipline, investment efficiency, effective service delivery etc.