The goal of this project was to assist the Government of Armenia in introducing the Medium-Term Expenditure Framework (MTEF) budgeting approach at the local government level. MTEF is a multi-year budgeting method that improves fiscal discipline and ensures more predictable resource allocation, aligning spending with policy priorities. To achieve this, the project focused on evaluating different MTEF model options to find the best fit for Armenia's local governments. This involved analyzing factors like the scope, time frame, and specific needs of the local context to select the most suitable model.

A detailed methodology was created to guide local governments in implementing MTEF, providing step-by-step guidelines, integration with existing budget processes, necessary management structures, expenditure classifications, and practical templates to ensure smooth adoption. The project's approach aimed to make the transition to MTEF as seamless as possible, ensuring that local governments had the tools and knowledge needed for successful implementation.

The project also included developing a rollout strategy in collaboration with the Ministry of Territorial Administration and Infrastructure (MTAI), the Ministry of Finance (MOF), and other stakeholders. This strategy set a timeline, prioritized which local governments to focus on first, and identified training needs. To support the transition, training sessions were provided to local government staff, equipping them with the skills to effectively integrate MTEF into their budgeting processes, ensuring a sustainable shift to this modern budgeting method.