The Ministry of Finance and Public Enterprises has begun preparing the Government’s mid-term budget for the three-year period from 2027 to 2029.

All Government offices have been asked to prepare and baseline budgets for the preparation of the medium-term budget. 

A baseline budget estimates the expenditure required to continue existing activities and projects at their current scope and level of operation. It does not include funding for new activities or projects, additional goods and services, or newly proposed staff positions.

The Ministry said offices must prepare their baseline budgets within the budget ceilings assigned to them and plan their activities and projects in line with the objectives outlined in the budget circular.

Submissions for the 2027–2029 period must be made through the SAP BPC module.

The medium-term budget will focus on ensuring fiscal and debt sustainability, improving the efficiency of Government expenditure and achieving stronger results from public spending.

It also aims to improve essential and social services, prioritise assistance for people who need Government support the most and raise the living standards of the public.

Staff expenditure must be calculated only for positions filled or approved by the end of this month. Overtime payments and allowances must be budgeted at the rates currently being paid.

Government offices have also been instructed to limit official travel to essential trips and plan them in the most cost-effective manner.

The Ministry has advised offices not to allocate funds for internal annual functions and similar events. Events that must be held should also be planned at the lowest possible cost.

Funding should be limited to essential maintenance required to prevent interruptions to services and equipment necessary for the operation of offices. Expenditure must also be estimated separately for each programme assigned to an office.

The Ministry has published the budget ceilings for offices responsible for preparing baseline budgets.

All Government offices must complete the requirements in the circular and submit their baseline budget to the Ministry before 2:00 pm on 20 August 2026. The Ministry may prepare the budget for any office that fails to meet the deadline.