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Minding the Gaps Comparing Uganda and

TanzaniaTim Williamson

Centre for Aid and Public ExpenditureOverseas Development Institute

t.williamson@odi.org.uk

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Comparing Tanzania and Uganda

• There are many similarities between the two countries– 2nd Generation PRS, improving and evolving Poverty Monitoring

Systems– Years of budget reform (MTEF, IFMIS etc)– Aid dependant, with strong accountability demands from donors– Dominant executive, with relatively weak domestic accountability

systems• …different trajectories of ownership of the PRS…..

– Tanzania increasing with iterations of the PRS– Uganda strong coalition of interest around PEAP early on, but

political ownership less evident now.• …and very different approaches to linking policy/the PRS

to the budget, and reporting

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How do the lessons from Minding the Gaps apply in

Uganda and Tanzania?1. Focus on strengthening and harmonization of

existing processes and adopt a gradual approach to reform

2. Support from within: High level ownership of policies, a challenge function within the executive and clear sector roles.

3. Foster incentives for integration4. Keep it simple

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Lesson 4: Keep it Simple

• 1990s: Two contrasting approaches to introducing the MTEF– Tanzania chose to move to full programme budgeting and

activity based costing in the MTEF– Uganda adapted its existing budget presentation, by grouping

institutions by sector and a simple use of performance indicators

• … and differing outcomes in terms of budget-policy link– In Tanzania very detailed agency MTEF documents, but difficult

to see the overall policy – budget link.– In Uganda arguably it is easier to see policy links in budget

documentation, despite a less sophisticated system.– Quality of sector/MDA submissions vary in both cases & there is

need to focus on operational efficiency in both cases

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Lesson 3: Foster Incentives for Integration: Linking Reporting to Decision Making Processes

• Both have new ideas for PRS reporting. But what role does PRS reporting play in domestic decision making?– Are the plans largely addressing donor accountability concerns? – Can they inform domestic policy decisions/accountabilty?

• …but the decision making process around the budget is a key entry point for reporting– E.g. in Uganda there is use of performance analysis and information

in budget documentation, but less so in Tanzania

• ….and so are sector policy processes in Uganda– In Uganda Annual Sector Performance Reports feed into well

established Sector Review Processes….but not linked to budget.

• What about PRS clusters and pillars?– In Tanzania the focus is on PRS clusters. Good for addressing cross

cutting issues, but accountability and decision making?

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Lesson 2: Build Support from Within

Start with making the budget policy oriented• The Strategic Budget Allocation System (SBAS) in

Tanzania – a sophisticated domestically conceived system to link the budget

to the PRS– but would it all have been necessary

• if MDA MTEFs were already well linked to policy;• and the PRS was structured in a way that made it easy to

interface with the budget (e.g. sectors not clusters)?

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Lesson 2: Build Support from Within

Sectors, Cabinet and the Budget Process• Strategic Phase in both Tanzania and Uganda

– but budget challenge still weak

• Cabinet and involvement in reviewing the MTEF/Budget Strategy and the Budget – Cabinet given explicit choices in Uganda, but appears a fait

accompli in Tanzania– No cabinet committees to review the budget in either country, so

extensive scrutiny is not likely

• In Uganda Parliamentary Budget and Accounts committees increasingly active..– How can they be supported?

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Lesson 1: Strengthen and Harmonise Existing Processes & Gradual Approach

A Gradual Approach?• Tz’s budget formulation reforms too sophisticated early on –

address fragmentation first?– PRS+MTEF+Performance budgeting+Strategic Planning all at once…..

• Uganda simpler approach to budget formulation reform– But financial management dimension has lagged behind

Strengthen and Harmonise existing processes• In Tanzania new initiatives were added to an already

fragmented system……...• In Uganda PRS initiatives were built on existing systems. This

helped with coherence (but is this changing?).

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…and finallyThe Primacy of Political Ownership

Tanzania and Uganda demonstrate that the domestic policy agenda is dynamic….

….to maintain ownership any framework for linking the PRS to the budget must be flexible and relevant to current policy.