Long-term financial forecast

From Encyklopedia Administracji Publicznej

LONG-TERM FINANCIAL FORECAST (LTFF) – long-term (at least four-year) financial plan of a local-government unit drawn up in a system of individual years. The LTFF includes: 1. long-term plan of budget incomes, broken down into current income (including tax incomes, subsidies and grants) and property income (including the sale of assets); 2. long-term budget expenses plan, broken down into current expenses (including debt service, guarantees and sureties) and property expenses; 3. budget result (deficit or surplus); 4. long-term plan of budget revenues, including the amount of credits and loans and issuing of securities; 5. long-term plan of expenditures, including repayment of capital instalments of credits and loans and buyout/redemption of securities; 6. projected amount of debt of the local-government unit and the method of financing its repayment; 7. operating result (difference between current income and current expenses); 8. repayment ratio; 9. allocation of the forecasted budget surplus; 10. amounts of current and property expenses resulting from limits of expenses for planned and implemented projects, i.e. multiannual programmes, projects or tasks, including those related to: programmes financed with the EU or EFTA funds and public-private partnership contracts. The LTFF covers the period of the budget year and at least three consecutive years. The debt forecast is prepared for the period for which it was contracted and liabilities are planned to be incurred. LTFF is an instrument of long-term financial planning in LGUs. An initiative to draft a resolution regarding the LTFF and change it belongs only to the local-government unit’s board. The LTFF is adopted in the form of a resolution of the decision-making body of the LGU [ T. Strąk ].

Literature: S. Owsiak, Finanse publiczne. Współczesne ujęcie [Public finances. Contemporary perspective], Warszawa 2017 ■ P. Walczak, Wieloletnia prognoza finansowa [Long-term financial forecast], Warszawa 2015.