Abstract:
Medium Term Expenditure Framework (MTEF) has replaced the traditional annual approach to budgeting in most Sub-Saharan African countries. Ghana and Nigeria adopted and implemented it in 1996 and 2009 respectively. However, its implementation in the Sub-Saharan African region is not as smooth as theorised. This suggests a comparative study to reveal the bottlenecks in the implementation process of MTEF in countries in the region.
This study is built on the political economy theory, to ascertain the role and influence of the governmental structures, stakeholders and culture in the implementation of MTEF in Ghana and Nigeria. It is also designed to proffer lessons for young MTEF adopting countries in the region.
To achieve the above objectives, an explorative case study approach was adopted. Fifteen persons from Ghana and Nigeria were interviewed. Respondents were drawn from MDAs (especially Ministry of Finance), Parliament, Civil Society Organizations (CSOs), World Bank/ IMF Country Office and Accounting Departments of Universities.
The analyses of data and findings revealed that the different governmental structures in Ghana and Nigeria influence the implementation of MTEF. More so, while some stakeholders in Ghana and Nigeria are very active and influential, others are passive and less influential. Furthermore, the place of culture in MTEF implementation in Ghana and Nigeria was not clear.
Finally, the many years of MTEF implementation in Ghana (among others) calls for realistic revenue forecasting in Nigeria. It also calls for fiscal discipline in budget implementation in Nigeria. It further calls for timely approval and implementation of the budget by the Nigerian Legislature and Executive, and the adoption of MTEF by all States in the Federation.
