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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

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