The Annual Budget Framework Paper (ABFP) is a strategic document that links the National Planning Framework, Medium-Term Development Plan (MTDP) and the expenditure priorities of the Capital Investment Budget each year, and serves as an input to the Budget Strategy Paper (BSP).

Section 6 of the Papua New Guinea (PNG) Planning and Monitoring Responsibility Act, 2016 (the Planning Act) warrants the production of the Annual Budget Framework Paper (ABFP) annually and guides the formulation of the Capital Investment Budget. It is published four (4) months before the tabling of National Budget in Parliament. The ABFP reconciles the Government's policy priorities ("development needs") with the fiscal envelope ("availability of funds") and guides the selection of investments, in alignment with the Government's Development Priorities and Aspirations, funded through the capital component of the National Budget.

The ABFP also provides the trend of expenditures in the Capital Investment Budget and sets sectoral ceilings and guides sectoral priorities for the forward year. Sectoral consultations are undertaken to determine the priorities within the sector and against the set ceilings.