Overview of 2023 Budget

Budget Credibility • the degree of deviation between planned and actual spending over a 12-month period • Different dimensions of Budget Credibility • • measure how close the government got to its estimated overall expenditure envelope how well it performed against its revenue predictions. • measures the credibility of the composition of expenditure and the size of the contingency budget • Considers whether or not recorded expenditures are an accurate reflection of actual spending commitments ● NETE Three drivers of budget non-credibility are identified . inevitable lack of knowledge as to how the future will unfold (uncertainty) the inability of the PM to fully control his Ministers (unruly agents) THEBE the desire to gain the support of external stakeholders by publishing a budget that one does not truly intend to undertake (signalling). NETE THEBE

View entire presentation