• https://publications.iadb.org/en/publication/latin-america-right-track-analysis-medium-term-frameworks-and-budget-process

Filc, Gabriel, et al. (2015). Medium-Term Frameworks and the Budgetary Process in Latin America. A Database: 2003-2007. IDB Open Data. https://doi.org/10.60966/8ikclepw

1. English

What is this dataset about?

This dataset compiles detailed information on Medium-Term Fiscal Frameworks (MTFs) — also known as Medium-Term Budgetary Frameworks (MTBFs) — adopted across Latin American countries.
It documents how governments plan, manage, and monitor fiscal policy over a multi-year horizon to improve budget credibility, fiscal discipline, and policy continuity.

What is a Medium-Term Framework (MTF)?

A Medium-Term Framework is a fiscal planning tool that links annual budgets to multi-year expenditure and revenue projections.
It helps governments align short-term spending with long-term policy goals, promoting predictability, transparency, and results-based budgeting.

What kind of information does the dataset include?

The dataset includes variables describing:

• Types of medium-term frameworks implemented (rolling, fixed, or indicative)
• Fiscal rule coverage (expenditure, deficit, or debt rules)
• Legal and institutional arrangements supporting fiscal reform
• Implementation stages and country maturity levels
• Country case data for Argentina, Colombia, and Peru, plus regional references

What are Medium-Term Fiscal Frameworks used for?

MTFs are designed to:

• Strengthen fiscal discipline and reduce budget volatility
• Improve multi-year planning and policy coherence
• Align public spending with development priorities
• Provide a foundation for fiscal transparency and accountability

Which countries are included in this dataset?

The dataset primarily covers Latin American countries, including detailed case studies for:

• Argentina
• Colombia
• Peru

It also references experiences in Chile, Brazil, and Mexico for comparative analysis.

What period does the data cover?

The dataset focuses on the development of Medium-Term Fiscal Frameworks (MTFs) during the 2000s and 2010s, when most Latin American governments began adopting medium-term planning and budgeting reforms.

Who developed this dataset?

The data were compiled and analyzed by Gabriel Filc and Carlos Scartascini of the Inter-American Development Bank (IDB), as part of the IDB’s work on fiscal policy modernization in Latin America.

How can this dataset be used?

This dataset can be used to:

• Compare how different countries implement medium-term frameworks
• Analyze fiscal governance reforms and budget process maturity
• Identify trends in fiscal rule adoption and budget transparency
• Support academic research or policymaking on public finance management

How is the data structured?

The data are available in CSV and Stata (.dta) formats.
Each record represents a country-framework observation containing information on:

• Institutional design and type of framework
• Legal basis and implementation year
• Fiscal rules and enforcement mechanisms
• Notes from field research and IDB evaluations

What is the definition of a medium-term framework?

A medium-term framework (MTF) is a fiscal planning tool that extends beyond the annual budget cycle, typically covering 3–5 years. It integrates macroeconomic projections (GDP, inflation, revenues, expenditures) with policy objectives to improve fiscal discipline and predictability.

What are the key components of a medium-term expenditure framework?

According to the dataset, an MTEF includes GDP projections, inflation projections, aggregated spending and revenue projections, expenditure by administrative unit and function, disaggregated income projections, program-level expenditure projections, and results projections.

What are the differences between a Medium-Term Fiscal Framework (MTFF) and a Medium-Term Budgetary Framework (MTBF)?

The MTFF focuses on macroeconomic aggregates such as GDP, inflation, and revenues, while the MTBF emphasizes budgetary allocations and ceilings for line ministries. Both aim to strengthen fiscal discipline, but MTBF is more operational in guiding expenditure decisions.

Why is a medium-term framework important for business stability?

For governments, MTFs provide fiscal policy predictability, stabilizing the business environment. By signaling expenditure priorities and revenue expectations over several years, they reduce uncertainty for investors and firms.

How many years is considered medium term in a strategic framework?

In public finance, “medium term” generally refers to a 3–5 year horizon. The dataset covers frameworks implemented between 2003 and 2007, aligning with this time span.

What are the differences between medium term framework vs annual budget?

Annual budgets focus on one fiscal year and are often reactive to short-term pressures. Medium-term frameworks extend projections across multiple years, linking annual budgets to long-term fiscal sustainability and policy goals.

What are the common challenges in implementing medium-term frameworks?

The dataset notes weak institutional capacity, unreliable macroeconomic forecasts, political cycles that disrupt continuity, and limited integration with expenditure management systems as recurring challenges.

What are the core components and definition of a Medium-Term Expenditure Framework (MTEF)?

An MTEF is defined as a multi-year expenditure planning system that sets aggregate ceilings and allocates resources across sectors. Core components include macroeconomic forecasts, sectoral ceilings, program-based budgeting, and results monitoring.

How does a medium-term framework improve fiscal discipline and policy consistency?

By requiring governments to project revenues and expenditures over several years, MTFs reduce ad hoc spending, align budgets with policy priorities, and improve transparency. Countries such as Chile and Uruguay in the dataset exhibit stronger fiscal discipline when MTFs are institutionalized.

What is a medium-term budgetary framework?

An MTBF is a structured budgeting approach that spans 3–5 years, setting expenditure ceilings and linking them to macroeconomic forecasts. It differs from MTEF by focusing more on budgetary allocations than on expenditure outcomes.