Transcript 幻灯片 1 - Ministry of Trade, Industry and Cooperatives

Ministry of Trade, Industry and
Cooperatives
Public Expenditure Management, Workplan
and Budget Preparation
in Government of Uganda
Julius A. Tumusiime
Economist
Policy and Planning Division, MoTIC
21st November 2013
Introduction

Budget and Workplan preparation is key in
the implementation of Government Policies
and Programmes, including those of the
Ministry of Trade, Industry and Cooperatives

The Public Finance and Accountability Act,
2003 and accompanying regulations give the
Minister of Finance, Planning and Economic
Development the responsibility of
developing and implementing an effective
budgeting process.
2
Guiding Frameworks for Planning
and Budgeting in GoU
National Development Plan (2010/112015/16)
 NRM Party Manifesto (2011-2016)
 Sector Strategic Investment Plan
(2009/10-2013/14)
 Sectoral Policies and Development Plans
(Trade, Industrial, Cooperatives, Textile,
Standards & Quality)

3
Sector Strategic Objectives
Trade:
1. Improve the doing business environment.
2. Nurture the private sector with a view to improve its
competitiveness in the domestic, regional and other international
markets
3. Increase market access for Uganda’s products and services in
regional and international markets.
4. Improve the stock and quality of trade infrastructure
5. Promote trade development
6. Promote policy synergies between the production and trade
sectors
7. Provide equal opportunity to Women and other disadvantaged
groups to participate in and benefit from trade
8. Promote the use of standards and quality infrastructure to improve
the competitiveness and safety of Ugandan products, processes and
service delivery systems in domestic, regional and international
4
markets
Sector Strategic Objectives
Industry:
1. Oversee development of Micro, Small and Medium scale
Enterprises (MSMEs)
2. Promote the development of value added industries especially the
agro-industries
3. Increase competitiveness of local industries
4. Enhance the development and productivity of the informal
manufacturing sub-sector
5. Enhance applied research and technology development
Cooperatives:
1. Promote good governance of the cooperative movement
2. Enhance the capacity of the cooperatives to compete in domestic,
regional and international markets
3. Diversify the type and range of enterprises undertaken by
5
cooperatives
Principles of a Good Budgetary System
What?
Why?
COMPREHENSIVE
Need a holistic mechanism for good policy
decisions
DISCIPLINED
Budget only a tool to constrain decisions
within resources
LEGITIMATE
Inclusive decision-making framework, clear
effect on policy
FLEXIBLE
Decisions should be made at the level
where information is available
HONEST
Budget needs to be on the basis of realistic
projections
INFORMATION
Necessary for honest effective decision
making
TRANSPARENT &
ACCOUNTABLE
Decision makers held responsible for
performance
6
LG Output Budgeting Tool (OBT)
As a result of the Public Service Reforms for
Result Oriented Management (ROM) where
Output Oriented Budgeting (OOB) was
introduced at both the Central and Local
Government levels.
 An MS-Access Tool used for both Workplan
Preparation, Budgeting and Performance
Reporting.
 Very instrumental in the Public Expenditure
Management and Budgeting Cycle of GoU.

7
Objectives and Rationale for Output Oriented
Budgeting (OOB) Reforms (Background)
•
Primary motivation of the reforms is to transform the budget process
from an input focus to a results orientation.
•
FY2009/10 introduced programme based budgeting (Vote Function
Reforms) which cost outputs related to public expenditure.
•
The objective of the recent reforms is to better link the budget to
results:
• Strategic: the link between the budget and policy objectives of the government,
focusing on the key results that will have the greatest impact in achieving those
objectives;
• Operational: establishing a systematic link between each votes expenditures and
the outputs of those expenditures
•
This will aid Parliament, Cabinet and Accounting Officers to improve
decision making and accountability......
8
Objectives and Rationale for Output
Oriented Budgeting (OOB) Reforms
(Decision Making and Accountability)
Results-based
Decision Making
- Budget
Formulation
Strategic
Operational
Accountability for
results - Budget
Reporting
9
Objectives and Rationale for Output Oriented
Budgeting (OOB) Reforms
(Systematic Budget Presentation and Reporting)

Budget Documents and Reports requires information to be presented
in a systematic way that promotes transparency and accountability of
Budget expenditures.

Yet, prior to the budgeting reforms in Financial Year 2008/09, all
Ministries and sectors would prepare documentation in a non -uniform
way making the analysis of the data very difficult for policy makers.

In addition, data in budget documents and reports were often found to
be inconsistent with the allocations stated in draft budget estimates
presented to Parliament for appropriation.

For example, there was little evident link with the budget allocations
and performance information stated in National Budget Framework
Papers presented to Parliament.
10
Objectives and Rationale for Output Oriented
Budgeting (OOB) Reforms:
(Public Finance and Accountability Act 2003)
Section 15 (2): Page 20
‘the Minister (of Finance, Planning & Economic Development)
shall prepare and lay before Parliament …… estimates of the expenditure of the
Government for that year……and shall include for each expenditure vote –
(i) A statement of the purposes for which the vote is to be used;……..
(iii)
A statement of the classes of outputs expected to be provided from that vote
during the year and the performance criteria to be met in providing those outputs;...”
Third Schedule (Paragraph 2) Page 45:
‘The following accounts shall be submitted to the Accountant General by accounting
officers;
(f) a statement of performance providing each class of outputs provided during the year
signed by the accounting officer that –
(i) compares that performance with the forecast of the performance contained in the
estimates laid before Parliament under sub – paragraph (iii) of paragraph (b) of sub –
section (1) of section 15; and
(ii) gives particulars of the extent to which the performance criteria specified in that
estimate in relation to the provision of those outputs was satisfied; ……’
11
Objectives and Rationale for Output Oriented
Budgeting (OOB) Reforms :
Linking the Budget to the Results Chain
Outcomes
Outcomes are the ultimate impact of sector interventions e.g.
improvement in living standards. Outcomes are often used at
the sector levels to discuss the impact of service delivery e.g.
healthier children (More efficient use of public funds)
Vote Function outputs
VF outputs are those outputs that represent core tangible
aggregated results such as medical supplies for health facilities
(Coordination and Monitoring of the National Budget Cycle)
Outputs
Outputs are the products of services delivered by projects or
programmes within an organization. They can also be referred
to as intermediate programme results; example – children
vaccinated (Coherent BFP and MPS Produced)
Activities
Inputs
Activities are undertaken by projects and programmes. They
are reflected in the annual work plan. Activities in combination
or singly will generate an output;, example procurement of
medical supplies (Budget Training Workshops)
Inputs are resources necessary to carry out activities .e.g.
vaccines, personnel, vehicles, (Hire of Venue, Printing and
Stationary, Allowances). They are represented by expenditure
line items in the budget using GoU Chart of Accounts; e.g.
224001: Medical and Veterinary supplies
12
OPERATIONAL
National
BFP
Sector BFP, Ministerial
Policy Statements
STRATEGIC
Scope of the Output Budgeting Tool (OBT):
Budget Planning
Annual Work Plans: Performance
Contracts(by programme and
project)
13
OPERATIONAL
Gov’t
Perf. Report
Budget Performance
Reports
STRATEGIC
Scope of the Output Budgeting Tool (OBT):
Budget Reporting
Vote Performance Reports (Against
Workplans / Performance Contracts)
14
Institutional arrangements for MPS/BFP &
Budget Preparation (Coordination critical)
• Global Allocation for Vote set in Budget Call Circular
MTEF Ceiling
Accounting
Officer
Prog./Project and
Vote Function
• Sets Vote Function Ceilings
• Sets Project/Programme Ceilings (through planning department)
• Project and Programme Heads completes work plan and submit to Planning
Department
• Planning Department Consolidates, aggregates outputs and indicators at VF
level and submits to SWG (BFP) or Lead Ministry (MPS)
• Detailed Budget Estimates and Annual work plans sent to MoFPED for
compilation
15
Purpose and usage of Reports generated
from OBT (Budget Planning)
Budget Planning
Reports
Purpose /Linkage to
Results Chain
Strategic/Operational
Accountability
Detailed Budget (Budget
appropriation)
Provides expenditure
information at the line
item level for each
output.
Operational
Annual Work plan
(Annex for Ministerial
Policy Statements)
Provides the link
between inputs, activities
and outputs delivered by
each project and
programme.
Operational
Vote/Sector Level
Summaries (BFP and
MPS)
Vote Function outputs,
KPIs , Sector level
outcomes and
performance issues
Strategic
16
Purpose and usage of Reports generated
from OBT (Budget Reporting)
Budget Planning
Reports
Purpose /Linkage to
Results Chain
Strategic/Operational
Accountability
Semi Annual and
Annual Budget
Performance Reports
Summary of Vote level
Expenditure and Physical
Output performance to
illustrate variations at
different levels:
Operational - highlights
key performance variations
to flag attention to
accounting officers
•Vote Functions
•Output
•Line Item
17
LG Output Budgeting Tool (LG-OBT):
Production and Marketing Workplan
District Commercial Services Function
Key Standard Outputs
Other Outputs
•Trade Development and
Promotion Services
•Enterprise Development
Services
•Market Linkage Services
•Cooperatives Mobilization
and Outreach Services
•Tourism Promotion Services
•Industrial Development
Services
•Construction of Markets and
other Commercial Support
Infrastructure
•Vehicles and other Transport
Equipment
•Furniture and Fixtures (NonService Delivery)
•Office and ICT Equipment
(including Software)
•Specialized Machinery and
Equipment
18
Annual Workplan Preparation Format
Standard Annual
(Vote
Planned
Function) Outputs
Outputs
Activities
Inputs
Trade
Developm
ent and
Promotion
Services
Information
passed
through Radio
Broadcasts
and pinned on
Notice boards
Radio
Announce
ments
Market
Information
for district
produce
disseminated
Quantity
Notice
board
…
…
…
…
Grand
Total
Cost
Total
Amount
4*12
20,000
960,000
1
70,000
70,000
…
…
…
1,030,000
* Use Procurement Price List provided by PPDA
19
THANK YOU
20