Sindh Finance Department team is examining existing rules to suggest necessary legislation for the World Bank-supported Medium Term Fiscal Framework (MTFF) and Fiscal Responsibility and Debt Management (FRDM).
"Adoption of fiscal responsibility and debt management legislation will enhance credibility and predictability of the fiscal policy," Sindh Chief Minister Syed Murad Ali Shah said, presiding over a joint meeting of World Bank experts and Finance department team, here on Friday.
Mehwish Ashraf, Fernando Blanco and Ariel Melamud and a five-member team led by Secretary Finance Najam Shah represented the World Bank and Finance department, respectively.
The chief minister said that the whole exercise was aimed at introducing fiscal policy under which non-development expenditures could be controlled by creating more fiscal space for social sector.
Shah said that Sindh's fiscal planning would be strengthened through medium term fiscal framework (MTFF) and it was expected to support budget preparation and improve resource allocation.
The World Bank economists said that MTFF was an instrument for fiscal planning which would facilitate more effective resource allocation and it integrates policy of objectives with public resources allocation decisions under a multi-year framework.
Secretary Finance Najam Shah said that MTFF would improve the consistency of resource availability, expenditure needs, resource allocation and medium term fiscal restrictions. He said that under the guidelines of the chief minister, the finance department had prepared a framework in consultation with the World Bank experts.
Najam told the chief minister that his team was examining existing rules and would suggest necessary legislation to launch MTFF and fiscal responsibility and debt management.