Elements to be included in a long- term financial plan

1. Time Horizon. A plan should look at least five to ten years into the future. SMEs may elect to extend their planning horizon further if conditions warrant.
2. Scope. A plan should consider all appropriated funds.
3. Frequency. SMEs should update long-term planning activities as needed in order to provide direction to the budget process, though not every element of the long-range plan must be repeated.
4. Content. A plan should include an analysis of the financial environment, revenue and expenditure forecasts, debt position and affordability analysis, strategies for achieving and maintaining financial balance, and plan monitoring mechanisms, such as
scorecard of key indicators of financial health.
5. Visibility. The SMEs should have long-term financial prospects of the government and strategies for financial balance.