a. i. Medium Term Expenditure Framework (MTEF):

• The MTEF is a medium-term high-level strategic plan, typically spanning three years in Nigeria, and is the basis for annual budgeting. The legal framework, such as the Fiscal Responsibility Act (FRA) 2007, mandates that spending should not exceed revenue by more than 3% of GDP, changing the budgeting perspective from “needs” to “available resources.”
• Components of MTEF include:
  • Macro-economic framework
  • Fiscal strategy paper
  • Expenditure and revenue framework
  • Consolidated debt statement
  • Statement on contingent liabilities.

Objectives of MTEF:

• To improve macroeconomic balance, ensuring fiscal discipline through realistic resource estimates.
• To enhance inter and intra-sectoral resource allocation by prioritizing expenditures aligned with socio-economic goals.
• To increase budget predictability via credible sectoral budget ceilings.
• To foster greater political accountability for expenditure outcomes.

ii. Budget Call Circular:

• The Budget Call Circular, also known as the Budget Circular, is a guide provided to Ministries, Departments, and Agencies (MDAs) for preparing the MTEF and annual budget estimates of revenue and expenditure. It serves as a manual for budget preparation.

iii. Difference between MTEF and Budget Call Circular:

• The MTEF is a three-year projection document focusing on a medium-term fiscal framework, while the Budget Call Circular is an annual guidance document that outlines the preparation for a single fiscal year budget