Post on 01-Apr-2015
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UGANDA APRM PROCESSUGANDA APRM PROCESS
National APRM Workshop on “Harmonizing the Mauritius’ APRM-NPoA with the existing Development Strategies and MTEF”: Mauritius; April 23 – 24, 2012
Max OchaiApril 24, 2012
National Program of Action: Costing and Funding
Presentation
Purpose:To share Ugandan experience in linking APRM-NPoA with MTEF and National Budget.
To stimulate debate and generate recommendations to assist Mauritius in harmonizing its APRM-NPoA with ensuing development plan, MTEF and National Budget.
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Outline
IntroductionConcepts
Practical ExperienceUgandan
Key Challenges and LessonsEffort
Some Recommendations
Conclusion
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1. Introduction
APRM-NPoA:A comprehensive program that guides and mobilizes a country’s efforts in implementing necessary changes to improve its state of governance and socio-economic development (vide APRM
Base Document).
Constituent part of CRR:Key input into peer review process
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1. Introduction Cont’d
Serves to present and clarify a country’s:Priorities identified
Activities undertaken
Responsibility of stakeholders
Derived from APRM-CSARPrepared in a participatory manner
Financed largely thru’ National Budget
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1. Introduction Cont’d
MTEF:
a whole of government framework for supporting a strategic and policy-based approach to budget preparation:
a medium-term fiscal framework;
future costs of existing policy; and
sector strategies.
an integral part of the Budget Cycle
1. Introduction Cont’d
Consists of:a top-down resource envelope;
a bottom-up estimation of current and medium-term costs of existing policies; and, ultimately,
matching of these costs with available resources – budgeting!
1. Introduction Cont’d
BudgetAnnual plan
Statement of expenditure and its funding
According to IMF (2001) GFS Manual:Revenues
– Tax– Non-tax– Grants
ExpenditureFinancing
– Loans
1. Introduction Cont’d
National Development Strategies (DS):ComprehensiveConsistentSystematic
PrioritiesDS
Inclusive of NPoA, provides the roadmap for policy priorities
1. Introduction Cont’d
Dove-tail
Planning processEvaluation
Macro-economic analysis– Situation analysis
» Priorities – point where DS confronts Budget
– Setting resource ceilings
Estimation of resource envelope
Public expenditure review
Budgeting process
2. Uganda: Practical Experience
NPoA: MethodologyDesk research – 1 unit
Expert panel interviews – 200 units
Focus group discussions – 96 units
National sample survey – 1,588 HHs
Country-wide consultationsPublic hearings – 4 regions
Submission of memoranda by interest groups – 4 regions
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2. …Experience Cont’d
NPoA: Results463 recommendations were made
o/w 307 recommendations in CRR
o/w 156 recommendations added by APR Panel of Eminent Persons
200 recommendations prioritized And, costed in NPoA over three years
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2. …Experience Cont’d
Costing: Institutional ArrangementAPRM-NC
Costing Team:Professional Cost Accountants
Technical Experts from:– Central Government MDAs– Bank of Uganda
Costing Team mandated to cost NPoA
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2. Cost of... Cont’d
Costing: MethodologyParticipatory approach
Stakeholders– Head of Public Service– MDAs– LGs– NDP Preparation Core Technical Team– APRM-NC
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2. Cost of... Cont’d
Costing: MechanicsStep 1: Selected a specific objective
Step 2: Selected a required action
Step 3: Determined critical tasks
Step 4: Ascertained required inputs
Step 5: Determined associated costs
Step 6: Adjusted the derived costs for:» Inflation, by 10% p.a.» Contingency, by 10% p.a.
Step 6: Validated costs15
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2. …Experience Cont’dTotal cost estimated at US$ 4.9 billion, 2008/09 to 2010/11 FYs
NPoA was NOT resource-constrained
2. Cost of... Cont’d
Costing: Basic ReferencesBFP, 2008/09 – 2010/11 FYs
Inputs
PPDA Budget Guidelines, 2008/09 FYUnit costs
www.michaelpageinternational.comConsultancy rates
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2. …Experience Cont’d
NPoA NDPThematic Paper on Governance
NDP MTEFSector Budget Framework Papers
MTEF BudgetAnnual Budget Call Circulars
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2. …Experience Cont’d
Sources of FundsDomestic:
National Treasury
MDAs - own receipts
LGs - own collections
External:Development Partners
– Multi-lateral– Bilateral
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2. …Experience Cont’d
Uses of FundsBudgetary:
Subjected NPoA to national, sectoral and sub-national priorities
Provided for implementation of NPoA in National Budget, within MTEF
Extra-budgetary:Discretionary
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2. …Experience Cont’d
ImplementationGovernment had primary responsibility
MDAs
LGs
Private sector and CSOs played role of:Service delivery
Advocacy
Watch-dog
2. …Experience Cont’d
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
2008/09 FY 2009/10 FY 2010/11 FY
Approved Budget Actual Spending
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2. …Experience Cont’d
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2. …Experience Cont’d
DisbursementsNational Budget:
Annual and Quarterly Workplans
Annual and Quarterly Requisitions
Annual and Quarterly Progress Reports
Extra-budget:Annual and Quarterly Workplans
Annual and Quarterly Requisitions
Annual and Quarterly Progress Reports24
2. …Experience Cont’d
Institutional MechanismMFPED, as APRM National Focal Point:
Political oversight
APRM-NGC:Monitoring
Reporting
NPA, as APRM National Secretariat:Support services
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2. …Experience Cont’d
CapacityInstitutional:
Equipment, systems and networks
Human:Technical officers and experts
Financial:Own and other funds
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2. …Experience Cont’d
Risks and MitigationPerceived Risks
Failure to mobilize adequate funds
Inability to build requisite capacity
Mitigation MeasuresPrioritization of critical tasks
Contract assignments
3. Challenges and Lessons
Key ChallengesConstrained resource envelope
assumed full support of Development Partners; and
Limited short-term planning capacitylimited influence over resource allocation
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3. … Lessons Cont’d
EffortSingle account system
Bank of Uganda
MTEFMulti-sectoral
Institutional-based
Capacity-building and development29
3. … Lessons Cont’d
LessonsInitial conditions matter
budget basics enhance implementation of MTEF
Strong case for a single budget agency and for NDP to be co-ordinated there;
Alternatively, clear institutional arrangements for managing integration
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3. … Lessons Cont’d
Giving priority to strategic phase of budget preparation enhances stakeholder engagement
Strategic management of policy and planning process at sector level is key
SWGs have proven effective, facilitated by PEAP and NDP
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4. Some Recommendations
1. Same macro-framework for MTEF and Plan
2. MTEF process should cover all sectors3. Budget comprehensiveness is key4. Opening up the budget-making process
to stakeholders as part of the development of the MTEF
5. Improved costing and target-setting to facilitate Parliamentary engagement in debate about the budget and the Plan
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5. Conclusion
NPoA can change state of governance and socio-economic development
MTEF process is the key to effective implementation of NPoA
MTEF must cover whole Government
Apply same macro-fiscal framework for MTEF and Plan
Execute a comprehensive budget
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END
THANK YOU