Section 3 of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003 require the Government to place three Statements in both Houses of Parliament. This section has been amended to require the Government to lay a fourth statement viz. the Medium Term Expenditure Framework (MTEF) in both Houses of Parliament, immediately following the session of the Parliament in which the budget has been presented.
The MTEF is to set forth a three-year rolling target for the expenditure indicators with specification of underlying assumptions and risks involved. The MTEF is essentially expected to be a vertical expansion of the expenditure projections in the MTEF Statement. The objecive of the MTEF is to provide closer integration between budget and the FRBM Statements. It also furthers the Government™s comitment towards fiscal consolidation.
Document Attached for reference
Medium-term Expenditure Framework Statement
