Programme Based Budget

 


Introduction

Programme Based Budget 

The Reform is expected to change the Budget classification from Activities to Programmes and introduce performance information in our budget system.  It is expected to:

• Ensure stronger Linkage between public spending and determined results.

• Ensure improved efficiency in the allocation and utilization of resources.

• Focus on more strategic budget information to promote understanding and debate in parliament. 

• Improve accuracy of budget information. 

• Shift emphasis of budget management from activities to delivery of outputs/ results.


Design and Deployment 

As part of efforts to improve the entire budget system, the GoG requires a budget preparation software that will be responsive to their requirements. The new system should: 

• Seamlessly integrate with the GIFMIS 

• Include strategic planning process in the budget and: 

• Improve consistency of data in both applications and effectiveness in the entire budget preparation and management cycle 

• The proposed system will allow Ministry of Finance to reduce the time associated with preparation and producing Budget information, as well as the production of management reporting, either internal or external. 


Focus  

• Trained critical mass of staff of all MDAs in the preparation of Programme Based Budgeting. 

• Provided Technical support to MDAs in the preparation of 2014-2016 Budget using the PBB format. 

• 2014-2016 Budget prepared and approved (appropriation act) in PBB format. 

• Assessment/ Evaluation of PBB Implementation.  


Status – on track 

• Budget Process Workflow Definition completed. 

• Meeting/ Consultations with key stakeholders – GIFMIS, FWSC, MOF PID. 

• Analysis (60%) and Design (40%) completed. 

• Standardization of MDAs operations. 

• Budget Process Workflow Definition completed. 

• Meeting/ Consultations with key stakeholders – GIFMIS, FWSC, MOF PID. 

• Analysis (60%) and Design (40%) completed. 

• Standardization of MDAs operations. 

 


Challenges 

• Institutional Arrangement. 

• Appointment of Programme Managers. 

• Capacity of MDAs. 

• Non existence of dedicated Budget Staff. 

• Non availability of baseline data. 

• Getting Parliamentary Select Committees to focus on outputs/ results rather than activities. 

• Allocation of Compensation of Employees Cost to Programmes. 

• Weak M&E Mechanism.  

 


Next Step 

• Complete the design and deployment for  the preparation of 2015 – 2017 budget.

• Review and deepen the implementation process of PBB.

• Engagement of Sector Specialists.

• Recruitment of dedicated staff.

• Implement our change management and communication plan.

• Review of Manuals/ Guidelines.  

• Training of Budget Staff on New Software.

• Roll-out of PBB to MMDAs.

• Strengthen M&E systems in MOF and MDAs.