the term of a government. The exception within our sample is Austria, also a codified administrative system, which also has the most recently implemented MTEF. There, as part of the political compact required for budget reforms, the timeframe, expenditure ceilings and reporting elements of the MTEF are set out in legislation (Federal Organic Budget Act 2009). Table 3.1 Comparative MTEF Institutional Arrangements: Summary of Responses Australia Austria Canada The Netherlands Legal and/or Policy + Legal Policy Policy Principles-based law Coalition policy basis? Federal Organic (Charter Agreement (CA) of Budget Budget Act 2009 Honesty Act 1998) Yes Yes Yes Yes Integrated with High integration High integration High Integration High Integration the annual budget process? What is the Four years Four years Three years Four years + 1 (Budget + three (t+1 to t+4) Annual Reference (Annual budget timeframe covered? outyears) Level Update within 4 year (ARLU) is Budget + expenditure limits two years set out in CA + Budget papers extrapolation year) report new initiatives separately Yes No Yes Yes Are forward years on a Forward years Forward years ARLU of Forward years ‘cost change exclude new policy, expenditure ceilings existing expenditure ceilings but include forecasts have two are basis? How programs’ ‘real’ defined? of economic and components: 75% Forward years non-economic fixed nominal and exclude new policy, parameters, which 25% variable but include forecasts are the basis for of economic and costing existing non-economic policies parameters, which are the basis for costing existing policies How are Ministerial Headings (sectors) Departments and Chapters forward years portfolios and and chapters programs (ministries) and programs (ministries) articles (programs) reported? Yes Yes Yes Yes Are estimates determined by Finance approval BMF (Austrian TBS (Treasury CA sets budget the Finance process for ministry Ministry of Finance) Board Secretariat) totals updates prepares estimates in determines ARLU Finance manages a Ministry? consultation with in consultation with system ‘trade-off’ ministries departments within the totals Three times a year: Annual Four times a year: How often are Nominal ‘heading’ - Budget expenditure ceilings Also, in-year update Most important are forward year projections - Midyear outlook for four years: of Economic and Spring and Budget updated? - ERC consideration revised only as Fiscal Projections Day necessary and (Oct-Nov) Independent Central
the term of a government. The exception within our sample is Austria, also a codified administrative system, which also has the most recently implemented MTEF. There, as part of the political compact required for budget reforms, the timeframe, expenditure ceilings and reporting elements of the MTEF are set out in legislation (Federal Organic Budget Act 2009). Table 3.1 Comparative MTEF Institutional Arrangements: Summary of Responses Australia Austria Canada The Netherlands Legal and/or policy basis? Policy + Principles-based law (Charter of Budget Honesty Act 1998) Legal Federal Organic Budget Act 2009 Policy Policy Coalition Agreement (CA) Integrated with the annual budget process? Yes High integration Yes High integration Yes High Integration Yes High Integration What is the timeframe covered? Four years (Budget + three outyears) Four years (t+1 to t+4) Three years Annual Reference Level Update (ARLU) is Budget + two years Budget papers report new initiatives separately Four years + 1 (Annual budget within 4 year expenditure limits set out in CA + extrapolation year) Are forward years on a change basis? How defined? Yes Forward years exclude new policy, but include forecasts of economic and non-economic parameters, which are the basis for costing existing policies No Forward years expenditure ceilings have two components: 75% fixed nominal and 25% variable Yes ARLU ‘cost of existing programs’ Forward years exclude new policy, but include forecasts of economic and non-economic parameters, which are the basis for costing existing policies Yes Forward years expenditure ceilings are ‘real’ How are forward years reported? Ministerial portfolios and programs Headings (sectors) and chapters (ministries) Departments and programs Chapters (ministries) and articles (programs) Are estimates determined by the Finance Ministry? Yes Finance approval process for ministry updates Yes BMF (Austrian Ministry of Finance) prepares estimates in consultation with ministries Yes TBS (Treasury Board Secretariat) determines ARLU in consultation with departments Yes CA sets budget totals Finance manages a ‘trade-off’ system within the totals How often are forward year projections updated? Three times a year: - Budget - Midyear outlook - ERC consideration Nominal ‘heading’ expenditure ceilings for four years: revised only as necessary and Annual Also, in-year update of Economic and Fiscal Projections (Oct-Nov) Four times a year: Most important are Spring and Budget Day Independent Central
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