the progress of implementation of medium term expenditure framework (mtef) in indonesia
DESCRIPTION
MINISTRY OF FINANCE – REPUBLI C OF INDONESIA. The Progress of Implementation of Medium Term Expenditure Framework (MTEF) in Indonesia. Go to Modern Budget System : Credible, Transparent, and Accountable. MTEF Framework. Long-term Development Planning. 20. National Goals. National. - PowerPoint PPT PresentationTRANSCRIPT
The Progress of Implementation of The Progress of Implementation of Medium Term Expenditure Framework Medium Term Expenditure Framework
(MTEF) in Indonesia(MTEF) in Indonesia
Go to Modern Budget System : Credible, Transparent, and Accountable
MINISTRY OF FINANCE – REPUBLIC OF INDONESIA
2
MTEF FrameworkMTEF Framework
APBN
Long-term Development PlanningLong-term Development Planning
MTDP
Govt Work Plan
OutcomeOutputActivityProgram
Strategic Plan
Work Plan
RKA-KL
MTEF
National Goals
PresidentPlatforms
To achieveNational Dept/Agency
20
5
1
Performance-based
3
MTEF IllustrationMTEF Illustration
2014201320122011
Policy decided as
baseline
(R)APBN Forward Estimate
Budget Implication
MTEFMTEF
Forward Estimate
Objectives and Conceptual Based of MTEFObjectives and Conceptual Based of MTEF
4
Objectives
Conceptual Based
allocative efficiency
improve quality of planning)
best policy option
fiscal dicipline
fiscal sustainability
rolling budget
1.
2.
3.
4.5.
Parameters
Baseline
Baseline Adjusment
additional budget for new initiatives
1.2.
3.
4.
5.
5
MTEF ProgressMTEF Progress1. Setup macro economic assumptions to
perform medium term fiscal framework (MTFF);
2. Setup tax ratio, deficit target, revenue target, expenditure limit to formulate medium term budget framework (MTBF);
3. Setup MTEF as an indicative ceiling for National Medium Term Plan (RPJMN) and MTEF for all Line Ministries/Agencies in preparing Strategic Plan (Renstra K/L);
4. Formulate 3-years forward estimates in Government Work Plan (RKP);
5. Calculate baseline and 2-years forward estimates for all LM/A in RKA-KL.
6
Medium Term Expenditure Framework:Medium Term Expenditure Framework: Setup baseline;
Determine the parameters;
Formulate 3-year forward estimates;
Forward estimates adjustment;Strategic review of Policy/Program.
Some ChallengesSome Challenges
7Formulate FE Apply per
ProgramForward Estimate
Parameter Index :2013, 2014, 2015
• Existing Policy : actual, trend analysis, adjustment;
• New Policy : assessment.
MTEF Context : Implementation Steps MTEF Context : Implementation Steps
Costing Process
Existing Government Policy
Re-priorities
Total = Existing + New
• Continued;• Terminated;
• Lapsing.
• Continued;• Lapsing;
• New Policy.
Set-up Parameters
Determine Baseline
2013 2014 2015
Review
Decide
Evaluate & Assess
determine
Take into account
8
Review
• DG Budget MoF• Dept/Agency
Set-up FE
• Bappenas• Dept/Agency
• MoF
• DG Budget MoF• Dept/Agency
Costing Process : • Existing Policy;
• New Policy.
• Continued;• Lapsing;
• New Policy.
Apply per Program
Parameter Index :2013, 2014, 2015
Govt. Policy: • Continued;• Terminated;
• Lapsing.
Determine Baseline
2013 2014 2015
Re-prioritas & Decide
Evaluate & Assessment
Set-up Parameter
Take into Account
• Bappenas• Dept/Agency
• MoF
•DG Budget MoF• Bappenas
• FPO MoF• Team Assumption
Units Involve and roles : Units Involve and roles :
9
Long-term TargetsLong-term Targets
Gives more flexibility to Department/ Agency in managing the budget;
Implementing Efficiency Dividend in line with Incentive/Disincentive Policy;
Introducing “Sunlight” project in order to motivate Budget Honesty Management.
10
DATADATA
2013 2014 20151 General Public Services 122.173 124.494 126.5442 Defence 65.908 67.518 70.0503 Public Order and Safety 25.268 25.783 26.9164 Economic Affairs 86.932 86.070 85.3715 Environmental Protection 10.064 9.914 9.267
6 Housing and Communities Ammenities 25.706 26.520 13.361
7 Health 13.412 7.679 6.3848 Tourism and Culture 2.070 2.081 2.0499 Religion 1.848 1.884 1.93510 Education 92.666 91.930 80.79711 Social Protection 5.234 4.555 4.598
451.281 448.430 427.272
Forward Estimate (Baseline)
JUMLAH
BUDGET ALLOCATION BY FUNCTION (BASELINE) , 2013-2015(billion rupiah)
No. FUNGSIAPBN 2012 2013 2015
- Economic Growth (%) 6,7 6,7-7,4 7,0-7,7 7,0-8,0
- Inflation (%) y-o-y 5,3 3,5-5,5 3,5-5,5 3,5-5,5
- Interest Rate of SPN 3 m (%) 6,0 5,0-7,0 5,0-7,0 5,0-7,0
- Exchange Rate (Rp/ US$1) 8.800 8.800-9.200 8.800-9.200 8.900-9.300
- ICP (US$/ barrel) 90 80-100 80-100 80,0-100,0
- Lifting (million barrel/ day) 950 970-990 970-1.000 1.000-1.010
ECONOMIC MACRO ASSUMPTIONS, 2012-2015
URAIAN 2014
11
DATADATA
APBN2012 2014
A. REVENUES AND GRANTS 1.311,4 1.437,8 1.614,1 1.815,1I. DOMESTIC REVENUES 1.310,6 1.437,3 1.613,7 1.814,7
1. Tax Revenues 1.032,6 1.165,3 1.335,3 1.530,1a. Domestic Tax Revenues 989,6 1.122,0 1.289,2 1.480,8b. International Trade Tax 42,9 43,3 46,1 49,3
2. Non-tax Revenues 278,0 272,0 278,4 284,7a. Oil and Gas 159,5 153,0 152,9 155,4b. Non Oil and Gas 118,5 119,0 125,5 129,3
II.GRANTS 0,8 0,5 0,4 0,4B. EXPENDITURES 1.435,4 1.546,1 1.680,5 1.777,0
I CENTRAL GOVERNMENT 965,0 1.025,0 1.107,0 1.133,91. Line Ministries 508,7 567,5 624,0 675,2
a. Baseline - 451,3 448,4 427,3b. New Initiative - 116,2 175,6 248,0
2. Non Line Ministries 456,3 457,4 482,9 458,7II.TRANSFER TO REGIONS 470,4 521,1 573,6 643,1
1. Balanced Fund 400,0 443,6 488,4 550,72. Special Autonomy and Adjusted Fund 70,4 77,6 85,2 92,4
C. PRIMARY BALANCE (1,8) 32,5 80,7 184,0D. BUDGET DEFICIT (A - B) (124,0) (108,3) (66,4) 38,0
% GDP (1,5) (1,2) (0,6) 0,3E. FINANCING 124,0 108,3 66,4 (38,0)
I. DOMESTIC FINANCING 125,9 123,0 91,3 (9,3)II.FOREIGN FINANCING (NETO) (1,9) (14,7) (24,9) (28,8)
Source: Ministry of Finance, RI
APBN 2012 & FORWARD ESTIMATE 2013-2015(trillion rupiah)
ITEMForward Estimate
2013 2015
12