- 10 Marks
PSAF – May 2021 – L2 – Q4a – The Budgeting Process in the Public Sector
Explanation of MTEF, Budget Call Circular, and their main differences for public sector budgeting.
Question
As the Accountant in charge of the expenditure division, you are to assist the Director of Finance in the ministry to set up a budget committee. You have also been asked to review the recently issued 2020 Budget Call Circular.
Required:
Explain briefly the following:
- Medium Term Expenditure Framework (MTEF) including FOUR of its objectives (6 Marks)
- Budget Call Circular (2 Marks)
- The main difference between MTEF and Budget Call Circular (2 Marks)
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