The Department of Budget and Management (DBM) defines forward estimates (FEs) as projections or estimation of the future costs of existing policies. It also serves as the validation instrument of determining the reasonable levels of agency proposals on existing programs/activities/projects. [DBM]
FEs are estimates of the future costs of on-going policies, programs and projects of the government for the next three years. They represent the amount that will need to be spent to maintain existing approved activities and projects. [DBM]
The FEs are used to estimate the residual amount of ‘fiscal space’ that may be available to fund new activities or projects or to expand existing activities in future budgets. The President and the Cabinet will lead the setting of the strategic direction and distribution of the unallocated fiscal space, allowing the better assessment of trade-offs and opportunities. If fiscal space is limited or negative, decisions may need to be taken to reduce activities and limit spending on new projects. [DBM]
[Read: What is Fiscal Space?]
Source: Department of Budget and Management
