The Ministry of Finance and Public Enterprises has officially begun preparations for the medium-term budget covering the 2027-2029 fiscal cycle, inviting all government agencies to submit their baseline budgets.
In a directive issued this week, the Ministry outlined that the baseline budget should reflect anticipated expenditures for ongoing activities, projects, and services currently being carried out at existing levels or scope. Notably, planned new activities, projects, additional services, materials, and budgets for new employees are not to be included in these submissions.
The Ministry has emphasised that submissions must adhere to strict budget ceilings and align with targets outlined in the published circular. All government agencies are required to complete and submit their baseline budgets before 2:00 pm on 20 August. The Ministry has reminded that it reserves the right to prepare budgets for any agencies that fail to meet the deadline.
The key objectives of the medium-term budget framework include ensuring fiscal and debt sustainability, promoting efficient public expenditures with measurable outcomes, improving the quality of basic and social services, prioritising assistance for the most vulnerable members of society, and enhancing overall quality of life for citizens.
Regarding personnel costs, the Ministry specified that employee expenditure should only cover ongoing and authorised positions as of the current month, with overtime and allowances budgeted at existing rates. Agencies have also been advised to plan cost-effective official trips and to avoid budgeting for annual meetings within individual departments, with essential meetings to be conducted in an economical manner.
Additionally, the budget should only include funding for essential repairs and hardware necessary to maintain operational continuity and prevent service interruptions. Programmes allocated to each office must be estimated separately.