Multi year budgeting: Conceptual framework and world practices

Reform mobility in the public financial management approach has started in order to solve economic problems, to ensure fiscal discipline, to get financial transparency and accountability, in many developed countries after 1980's. The World Bank has observed the reform mobility and developments among the countries. The World Bank has analyzed the evaluations of this situation in its Public Expenditure Reports. According to the results of this report, the World Bank published The Public Expenditure Management Handbook and proposed the multi-year budgeting system, called the medium-term expenditure system, as a guide to the restructuring processes of countries. Under the leadership of the World Bank, many developed and developing countries reformed their public financial management systems and switched from annual budgeting to multi-year budgeting. In this study, the conceptual framework of the multi-year budgeting system is discussed, practices of developed and developing countries of the system are examined, and finally the application of the system in Turkey is evaluated.