medium-term financial strategy

Medium-Term Financial Strategy

A financial strategy with a term longer than the short term but shorter than the long term. The exact length varies according to the usage; it could be a few weeks or a few years. In general, however, a medium-term financial strategy outlines investment and other financial goals for any time between roughly six months and one year.

medium-term financial strategy (MTFS)

a monetarist strategy (see MONETARISM) employed by the UK government to control the economy from 1980 down to the early 1990s. The MTFS set out a target range for the growth of the MONEY SUPPLY and target values for the PUBLIC-SECTOR BORROWING REQUIREMENT, expressed as a percentage of GROSS DOMESTIC PRODUCT. The purpose of the medium-term financial strategy was to provide a known firm base for the operation of government MONETARY POLICY, to assist in the control of public expenditure and to influence the public's expectations about future rates of INFLATION. See alsoMACROECONOMIC POLICY, MONEY SUPPLY/SPENDING LINKAGES.
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A Medium-Term Financial Strategy (MTFS) report from chief executive Darren Mepham and interim head of finance Gill Lewis, which is due to be considered by cabinet members today, states the increase in council tax is "in order to generate additional income to provide flexibility to mitigate the impact of some of the proposed budget reductions on the citizens of Bridgend based on the outcome of consultation with the public and members".
He said: "The panel is correct to recognise the extent of the extremely challenging circumstances facing the council as it focuses on developing a robust medium-term financial strategy - a challenge made all the more difficult by year-on-year cuts to government grant allocations.
Mr Coppinger said: "The precept increase is part of a medium-term financial strategy to move Cleveland Police forward and deliver savings and effi-ciencies.
However, the stand-alone credit profile, which is assessed at "b+", is constrained by significant sector and counterparty concentration risk, which raises doubts about the bank's medium-term financial strategy and weakens its income-generation ability, the service added.
We have sought assurances from the GOC that they are not wilfully expanding their activities and that, at long last, they have in place a medium-term financial strategy to ensure that their fees start to level out for the following year, because a third successive massive increase would indicate an organisation now out of control:'
The financial challenges for the council do not end with agreement on this budget; the prospects for 2010/11 are just as challenging and work on the medium-term financial strategy has already started.
The Audit Commission's draft report - leaked to the Evening Telegraph - criticised the council for not making it clear it had pounds 90m in reserves, not having a medium-term financial strategy and not putting all the facts and figures before councillors in its budget-setting process.
Thus our forecasts are not constrained to produce the totals for spending or for borrowing implied by the Medium-term Financial Strategy.
Maintaining a consistent medium-term financial strategy still remains essential to safeguard sustainable medium-term growth, but it provides a formidable challenge.
35% into their medium-term financial strategy for this non election year.
Next year's budget for the unitary Northumberland Council is a critical one, as it will require around pounds 28m in savings to launch the authority on its medium-term financial strategy.
Mr Nicklin's report to councillors said: "The council has taken effective action over the past two years to ensure that its medium-term financial strategy, budgets and capital programme are soundly based and are designed to deliver its priorities.

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