Transcript LINKING THE BUDGET TO NDP 18 Oct

LINKING THE BUDGET TO THE
NATIONAL DEVELOPMENT PLAN
MINISTRY OF FINANCE, PLANNING &
ECONOMIC DEVELOPMENT
AND
NATIONAL PLANNING AUTHORITY
1
Presentation Outline
• Introduction
• Priorities for 2014/15
• Linkage between NDP and the Budget
• NDP II Process
• Conclusion
2
Introduction
Objectives of the Presentation
• Guide Votes on alignment of their Budgets to
the NDP priorities
• To demonstrate the allocation of the Budget
to the NDP priority areas thus far
• To communicate the NDP II preparation
process
3
Introduction
• Government approved the comprehensive
National Development Planning Framework
(CNDPF) policy in 2007;
• Provides a clear perspective vision and long-term
plans to articulate the country’s strategic
development objectives and priorities against
which medium and short term plans are
anchored.
4
Introduction
Elements of the CNDPF
–It is comprised of five principal elements
• 30 Year National Vision.
• 10 Year National Development Plan
• 5 Year National Development Plans
• Sector Investment Plans
• Local Government Development Plans (DDP & MDPs)
• Annual Plans
• Annual Budgets
5
Introduction
Uganda Vision 2040
• In April 2013 Government launched Uganda
Vision 2040 whose aspirations are to transform
Uganda from a predominantly low income
country to upper middle income country within
30 years with per capita income of USD 9500.
• Uganda Vision 2040 is to be achieved through
implementation of the NDPs which are
financed mainly through the National budget.
6
Introduction
National Development Plan FY 2010/11-14/15
• The NDP is the overarching Government plan
which stipulates the medium term strategic
direction,
development
priorities
and
implementation strategies;
• The theme of the NDP is Growth, Employment
and Socio-economic Transformation.
• Sectors are responsible for developing policies and
plans, which must be aligned with the NDP;
• The LGDPs are majorly linked to the NDP through the
SIPs
7
The Key NDP Priorities
1. Accelerating infrastructure development (energy,
ICT, transport).
2. Increasing agricultural production and productivity
3. Improve on community’s social well-being and
human development ( Education and Health).
4. Water for Production
5. Governance and accountability
Note: Other priorities may emerge in the course of
implementation of the National Plan e.g. disasters;
8
Priority cont.....
1. Accelerating infrastructure development
LGs will focus on:
• Increase investment in value addition;
• Rehabilitation and routine maintenance of roads and bridges
2. Increasing Agric. Production & Productivity:
LGs should focus on the following;
• Use of improved seeds, fertilisers and provision of extension
services
• Promotion of the 10 key commodities
• Small scale and affordable technologies such as walking
tractors
• Agro zoning
9
Priority cont.....
3. Improve on community’s social well-being &
Human Development
LGs should focus on;
• Improving provision of social services delivery
especially in education and health
4. Water for production
LG should focus on:
• Rain water harvesting for production;
• Small scale irrigation technology
10
Priority cont.....
5. Governance & Accountability
LGs should focus on:
• The rule of law and accountability
• Monitoring and supervision
• Effective and efficient use of limited resources
• Effective
implementation
of
Government
programme
11
Why harmonise the Budget and
the NDP
• Priorities have to be financed;
• Aligning planning and budgeting cycle of
Government;
• Rationalisation of budgeting and planning
instruments;
• Participation in planning and budgeting processes
12
Linkage between the NDP and the
Budget
• The budget is the main tool by which
Government
allocates
resources
to
implement its plans and address emerging
policy priorities;
• The Budget Framework papers and MTEF
translates policies into implementable plans;
• The framework for linking policies and plans
to the budget is as demonstrated below:
13
Linkage between the NDP and the
Budget
Strategic
Operational
NDP
MTEF &
NBFP
Annual
Budget
Sector
Investment Plan
Plans
Sector
BFP
Ministerial
Policy
Statements
Overall
Policy
Sector
14
Linking Budget to NDP Cont......
1. Medium Term Exp. Framework (MTEF)
• The MTEF is a framework linking policies and
plans to the budget;
• MTEF rationalizes plan with finances in an
integrated manner;
• Reduces the imbalance between what is
affordable, available and expenditure
requirement.
15
Linking Budget to NDP Cont......
2. Medium Fiscal Framework (MTFF)-Res.Env
• Sets fiscal policy and macroeconomic targets;
• It sets out the hard budget constraint;
3. The National Budget Framework Paper (BFP);
• The Government Budget strategy document
linking Government’s overall policies and the
budget.
4. The Budget:
• An estimate of Government revenue and
expenditure prepared annually.
16
Challenges of Resource Allocation
• Limited resource envelope vis-à-vis increasing
demand for resources;
• Financing productive sectors vs. other enabling
sectors;
• Poor prioritization of resource allocation at
sector level;
• Allocative inefficiency;
17
Mapping Budget to the NDP
• The excel sheet below shows budget provision
against the NDP projections (FY 2010/11-FY
2013/14):
• Mapping National Budget - NDP.xlsx
18
THE NDP II PREPARATION PROCESS
• The current NDP (NDP I) is coming to an end
(June 2015)
• NDP II will set the agenda for the next five
years
• NDP II must be in place by September 2014 to
inform the budget process for 2015/16 and
also other stakeholders plans like: CSOs,
private sector and Development Partners
19
What is likely to inform NDP II
• The Vision 2040:
– Vision 2040 highlights the key opportunities and fundamentals
for government Investments;
– The Opportunities and fundamentals e.g. Tourism infrastructure
and Minerals Infrastructure
• NDPI Mid Term Review (MTR)
– Emerging issues: poor implementation; weak alignment of NDP
to budget; underfunding NDP core projects; inadequate human
resources
• On-going Regional and International discussions
– EAC heads of state discussions, MDGs, etc
20
Approach to the production of NDPII
• Alignment of implementation plans and
Budgets with NDPII
– Sector Investment Plans and Higher LG
Development Plans
– Budget
– Other stakeholder plans (Development
Partners, CSOs, Private sector)
21
PLANNING FRAMEWORK
VISION
2040
NATIONAL DVELOPMENT
PLANS (NDPs)
SECTOR
Dev’t
PLANS
SETOR
Dev’t
PLANS
SECTOR
Dev’t
PLANS
SECTOR
Dev’t
PLANS
DDPs/ MDPs
22
Clearly aligned objectives and indicator
Vision
Priorities
NDP Objectives &
Indicators
Sector Objectives &
Indicators
DDP/MDP Objectives & Indicators
23
Approach cont….
• Implementation Modalities
– Improve capacity to implement(Human resource and
institutional capacities)
– Address challenges of Implementation (Procurement
processes, resource mobilisation among others.)
• A multi-sectoral core team has been constituted
• National development issues paper has been developed
• National consultations are planned
24
The NDP II proposals will cover:
– Development of a detailed macro-economic
strategy;
– the SIP/SDPs and LGDPs reviewed and aligned to
NDPII priorities;
– Making sure cross cutting Issues are well addressed
(e.g. population, social protection, human rights,
gender, culture and national values, Environment
etc.) ;
– Instruments of monitoring and evaluation are
appropriately developed;
– Addressing issues of physical planning.
25
Timelines
Tasks
2013
Jul
Aug
Sep
Oct
2014
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
2015
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Preliminary Activities
Macro-economic strategy
Sector Development Plans
Local Government
Development Plans
Cross cutting issues
Implementation, Monitoring
and Evaluation
Spatial Reflection of NDP2
Drafting and Approval Process
for NDPII
NDP2 Dissemination
26
Mar
Conclusion
• National BFP represents the strategic link
between Government’s overall policies (NDP)
and the annual budget;
• Resource allocation should be based on NDP
priorities and on emerging challenges;
• The budget for FY 2014/15 should be in line
with above priorities.
• Infrastructure development is expected to
remain a key priority under NDP II;
27
THANK YOU FOR
LISTENING
28