The Macrofiscal Function and its Organizational Arrangements prepared by Israel Fainboim and Ian Lienert published by IMF, indicated by Alvaro Manoel (2019).
“Conducting sound fiscal policy requires a strategic vision of public finances that anchors the budget in a medium-term perspective. In turn, the medium-term fiscal framework (MTFF) incorporates a country’s policy choices and priorities given their growth and equity objectives, available resources, and debt sustainability considerations. In many countries, the macrofiscal framework supports the annual budget as the government’s most important policy tool.
The macrofiscal framework includes a medium-term fiscal framework and, in many countries, fiscal rules or targets. The framework provides the context under which fiscal targets are set, policy choices are determined, and realistic revenue and expenditure projections are prepared. Governments need strong macrofiscal analytical capacity for preparing a sound MTFF, which underpins the medium-term budget framework (MTBF—see Harris et al., 2013) and the annual budget that lay out the government’s policy priorities.
The macrofiscal department (MFD) of a Ministry of Finance (MoF) is the government’s key unit for elaborating sustainable medium-term fiscal objectives and policy orientations, and for assessing fiscal risks.3 It also ensures consistency between macroeconomic developments and projected revenues and expenditures. In this paper we refer to the MFD as the organizational unit (or units) of the MoF or other government agencies that perform macrofiscal functions. Despite the importance of the macrofiscal function, there is little research on what constitutes macrofiscal analysis, how macrofiscal tasks should be distributed within the MoF and other government agencies, and what are the key features of a strong MFD. One of the few cross-country studies on MFDs is that of Martinez-Vazquez and Ortiz (2009)…”
