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Is Latin America on the Right Track? An Analysis of Medium-Term Frameworks and the Budget Process

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  • Carlos Scartascini
  • Gabriel Filc

Abstract

Medium Term Fiscal Frameworks (MTFs) have become one of the most popular reforms to the budgetary process in Latin America during the last decade, and introducing MTFs seemed to be the magic solution for most fiscal ailments. Nonetheless, there has been no comprehensive evaluation of their impact. This document discusses the normative merits of using MTFs, provides a characterization of the different types of MTF, and describes their development in the Latin American region based on extensive field work. As a first approximation for understanding how they are working, this document explores in detail the cases of Argentina, Colombia and Peru. While an unambiguous diagnosis is not possible, this document lays the groundwork for progress toward comprehensive impact evaluations and, eventually, to the consolidation of MTFs in the region.

Suggested Citation

  • Carlos Scartascini & Gabriel Filc, 2010. "Is Latin America on the Right Track? An Analysis of Medium-Term Frameworks and the Budget Process," Research Department Publications 4659, Inter-American Development Bank, Research Department.
    • Handle: RePEc:idb:wpaper:4659
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    References listed on IDEAS

    as
    1. Hallerberg,Mark & Rainer Strauch,Rolf & von Hagen,Jürgen, 2010. "Fiscal Governance in Europe," Cambridge Books, Cambridge University Press, number 9780521138260, September.
    2. Mark Hallerberg & Carlos Scartascini, 2011. "Economic Crisis and Fiscal Reforms in Latin America," Research Department Publications 4697, Inter-American Development Bank, Research Department.
    3. repec:idb:brikps:40358 is not listed on IDEAS
    4. Shigeru Otsubo, 2002. "Working Paper 61 - Linking Africa to a Changing World," Working Paper Series 195, African Development Bank.
    5. Carlos Scartascini & Ernesto H. Stein & Emmanuel Abuelafia & Sergio Berensztein & Miguel Braun & Luciano Di Gresia & Lee J. Alston & Marcus André Melo & Bernardo Mueller & Carlos Pereira & Mauricio Cá, 2009. "Who Decides the Budget? A Political Economy Analysis of the Budget Process in Latin America," IDB Publications (Books), Inter-American Development Bank, number 87294 edited by Mark Hallerberg & Carlos Scartascini & Ernesto H. Stein, February.
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    Cited by:

    1. Ringa Raudla & James W. Douglas & Muiris MacCarthaigh, 2022. "Medium‐term expenditure frameworks: Credible instrument or mirage?," Public Budgeting & Finance, Wiley Blackwell, vol. 42(3), pages 71-92, September.
    2. Vlaicu, Razvan & Verhoeven, Marijn & Grigoli, Francesco & Mills, Zachary, 2014. "Multiyear budgets and fiscal performance: Panel data evidence," Journal of Public Economics, Elsevier, vol. 111(C), pages 79-95.
    3. Grigoli, Francesco & Mills, Zachary & Verhoeven, Marijn & Vlaicu, Razvan, 2012. "MTEFs and fiscal performance: panel data evidence," Policy Research Working Paper Series 6186, The World Bank.

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    More about this item

    Keywords

    Latin America; Medium-Term Fiscal Frameworks; Medium-Term Expenditure Frameworks; Budget Process; Fiscal Outcomes; Fiscal Reforms;
    All these keywords.

    JEL classification:

    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • H68 - Public Economics - - National Budget, Deficit, and Debt - - - Forecasts of Budgets, Deficits, and Debt
    • H00 - Public Economics - - General - - - General

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