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This updated framework for the public sector includes:
To set the budget within the context of fiscal sustainability.
To govern for the just and common good of current and future generations.
A fiscal sustainability framework ensures that the balance of fiscal policies is constructed in such a way that the objective can be maximized within the constraints of:
Budget cycle (1-5 years) or medium-term fiscal framework (MTFF)
Targets over the cycle are:
It is important to note the following:
Economic cycle (medium-term or 6+ years)
Intergenerational cycle (long-term or 10+ years)
Target is to address the fiscal pressures through:
Above all, a leading practice fiscal sustainability framework should encompass the bipartisan commitment to sustain or improve government finances over the short, medium and long term.
Key fiscal sustainability framework objectives should be measureable by:
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