Authors:
Uribe Ramos Doralba, Cifuentes Oyola Camilo Andrés, Orlando Carmelo Castellanos Polo
Addresses:
Department of Public Accounting, American University Corporation, Barranquilla, Colombia. uribedoralba7843@americana.edu.co, cifuentescamilo7045@americana.edu.co, ocastellanos@americana.edu.co
Abstract:
In Colombia, the Medium Term Fiscal Framework (MFMP) was implemented to strengthen fiscal management, promote sustainability, and guarantee economic stability in the medium term due to the significant fiscal challenges the country faced in the past, such as high fiscal deficits and a growing debt burden. The implementation of the MFMP sought to address these challenges and strengthen fiscal consolidation in the medium term, ensuring a sustainable balance between public revenues and expenditures. MFMP is a public sector financial planning tool established by Law 819 of 2003, through which, based on estimates for the current year and in the context of internal and external conditions, They project income and expenses for ten years to guarantee compliance with current debt standards, rationalization of public spending, transparency, discipline, and fiscal responsibility; all of this to make the territorial entity solvent, financially viable and fiscally sustainable, by the provisions of the National Constitution. Within MFMP, the financial plan is crucial because it is a strategic document that establishes the financial goals, objectives, and actions necessary to achieve them. It is a fundamental tool for implementing and monitoring established fiscal policies, provides a comprehensive view of the Entity’s financial activities, and establishes a framework for allocating resources and monitoring financial performance.
Keywords: Medium Term Fiscal Framework; Planning and Public Finances; Solvency and Sustainability; Projection and Income; Financial Activities and Establishes; Growing Debt Burden; Fiscal Management.
Received: 03/08/2023, Revised: 10/10/2023, Accepted: 27/11/2023, Published: 03/03/2024
AVE Trends in Intelligent Technoprise Letters, 2024 Vol. 1 No. 1 , Pages: 40-49