Question

Medium term plans may fail to realize the objectives of the “Zambia 2030 vision.” Identify and discuss any two common weaknesses associated with medium term plans in Zambia.

Answer 1

Medium term plans may fail to realize the objectives of the “Zambia 2030 vision.”

What the Medium-Term Expenditure Framework Does

• Extends the time frame of budgeting from one year to 3-4 years

• Establishes a fixed constraint on budget decisions – fiscal targets

• Projects the future cost of existing programs and policy changes

• Restructures budgeting to focus on policy initiatives

• Gives spending units incentives to reallocate resources

• In some countries, divides the budget process into framework and estimates stages

• Activates procedures to assure that policy changes conform to budget constraints

• Rolls the MTEF forward each year by dropping the first year and adding a year at the

On the downside, medium term financial planning relies on your assumptions about everything from income, expenditure, health, returns etc. Poor assumptions (or events) will result in a less than useful financial plan.

In Zambia policies changes in mid term without any planning which leads to fail of objectives

Resources are not properly associated.