إدارة
Volume 32, Numéro 2, Pages 111-120
2022-12-31

Public Spending Planning Under Fiscal Crises Through The Annual Budget: Palestine As A Case Study



Authors : Mustafa Enas .

Abstract

The fiscal situation in Palestine has become critical in the recent several years. The severe economic shocks experienced as a result of Covid-19 pandemic, the repetitive clearance revenue crises with the Israeli side, and the international aid declining trajectory are the main causes for the last fiscal crises. Nonetheless, the pressure on the public spending became unbearable, and the budget deficit continued to increase. Under these challenging circumstances, the importance of creating a budget tool that allows policy makers manage expenditure efficiently is a must. This paper discusses how the budget Medium Term Fiscal Framework (MTFF) was developed to manage public spending under the huge deficit gap. It focuses on protecting high priority spending, cancelling or stopping other existing services, and suggesting alternatives for new policy choices. This helps Ministry of Finance officials formulate budget proposals for decision makers. The comprehensive detailed MTFF can be used to plan spending during the year. The developed MTFF ensures the delivery of high priority services whilst budget deficits remain within the fiscal target and expenditure on arrears remains controlled.

Keywords

Fiscal Crisis, Medium Term Fiscal Frame MTFF, Budget Deficit.

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