The experience of a medium-term expenditure framework in Turkey

Abstract

Modern public expenditure management (PEM) is a new budgeting approach that takes into account the preferences and behaviors of the actors in the budgeting process. In this approach, three important budgetary outcomes are desired: aggregate fiscal discipline, allocation of public resources in line with strategic priorities, and effective provision of public services. The main argument of PEM is that changes should be made in the rules of the game in budgeting to gain these outcomes effectively. According to PEM, poor outcomes are unavoidable if the budgetary tools do not produce sufficient information or incentives for the actors in budgeting (Campos and Pradhan 1996; Schick 1999; World Bank 1998).