The limits on expenditure growth set out in Partnership 2000 are an integral part of a balanced fiscal policy which will promote the continued growth over the medium term of a strong, competitive economy. As the Deputy is aware, in my Budget Statement I said that constraining the growth of public expenditure will be central to achieving the Government's medium term budgetary goals. I acknowledged that, to date, we have not been as effective in this area as we would wish and that it is essential to improve our performance. The key to making this improvement is to manage expenditure properly in a medium term budgetary framework. Work on creating that framework has been under way for some time.
The way to manage public expenditure better is to implement the wide-ranging programme of financial reforms set out in "Delivering Better Government". This will involve moving to a devolved, medium term approach to expenditure which will underline the primary responsibility of spending Departments for managing their expenditure programmes within settled allocations and taking accountability for the results achieved. We need to settle expenditure priorities and to examine the rationale for existing programmes in changing circumstances. To meet this need, I announced in the budget that a rolling programme of expenditure reviews will begin this year. This will lead to evaluation over a three year period of all major departmental spending programmes.
The second key step is to create the medium term budgetary framework within which expenditure will be managed. I announced in the 1996 budget the introduction of a multi-annual planning framework designed to assist the Government, in settling the annual budget, including its expenditure dimension, in taking account of the medium term budgetary effects. The first steps in this initiative were taken during 1996, culminating in the publication with this year's budget of projections for 1998 and 1999 of the main budgetary aggregates based on the provision of the existing levels of service and of the additional Partnership 2000 commitments on spending and taxation. Further development of the multi-annual budgetary approach is now under way and the intention is to publish expenditure projections for 1999 and 2000 with the 1998 budget based on existing levels of service disaggregated to Vote Group level.
Multi-annual budgeting will put in place a strategic expenditure control framework under which there will be agreement on overall expenditure limits. Settling departmental financial allocations will act as a major incentive for Departments to improve the management of programmes, to reorder priorities and to ensure that value for money is obtained. Under the new system the Government will retain its responsibility for settling the annual Estimates. The ultimate responsibility for ensuring that spending remains within the Partnership 2000 limits rests with the Government and it is determined to meet that responsibility. A significant reduction in the rate of growth of public expenditure since 1990 will be required.
In summary, the Government is determined to meet the targets for public expenditure growth set out in Partnership 2000 and we are already advanced in designing and constructing the necessary improved arrangements.