Budget Facility for Infrastructure (BFI) Circular

Budget Facility for Infrastructure (BFI) Circular

Overview

The BFI Circular is issued by National Treasury and governs the process by which large infrastructure projects apply for fiscal support through the national budget. It makes CBA or CEA a mandatory submission requirement for all applicants. Submissions to the BFI must include a socio-economic analysis that quantifies the economic costs and benefits associated with the preferred options and the anticipated wider and distributional impacts, as well as a sensitivity analysis that tests the assumptions used in the socio-economic analysis. A CBA is employed when the impacts of a project can be monetised, as with most economic infrastructure interventions — it seeks to establish whether a particular investment is the most efficient use of society's resources. A CEA is typically used for social projects and programmes where benefits are difficult to quantify.

Document Files