Budget Execution Process In Uganda
Budget execution is the process of monitoring, adjusting, and reporting on the current year’s budget.
Budget Execution Process In Uganda
In order to prepare for the analysis of possible entry points for GRB in the budget process in Uganda,
in this chapter we outline the budget process on the national and local level and give an overview of
the key planning and budgeting tools. According to the four stages which in chapter 3 are used to
structure the discussion on possible entry points and integration of GRB in Uganda Figure 1 presents
an overview of the national budget cycle.
lanning Budgeting Long-term planning and expenditure forecasting at central government level Vision 2040 (former Vision 2035, or Poverty Eradication Action Plan) Long Term Expenditure Framework Medium-term planning and expenditure forecasting at central government level
National Development Plan (5 years)
Medium Term Expenditure Frameworks (5 years) Medium- to short term planning and budgeting
at central government level and sector level Sector Plans (5 years) Ministerial sector Policy Statements (annual) Sector Budget Framework Papers and National Budget Framework Paper (3 years)
Annual budgets Medium- to short-term planning and budgeting at district level
District Development Plans (5 years) Local Government Budget Framework Papers (3 years) and Annual Work/Budget Plans (1 year)
Source: Generated by Dietl based on Ingvarsson (2008:6) and National Planning Authority (2013:117)
The Vision 2040 is the long-term planning and expenditure forecasting tool at the central
government level and along with it goes the Long Term Expenditure Framework, an indicative long
term budget planning document. It includes the national vision statement for Uganda “A
Transformed Ugandan Society from a Peasant to a Modern and Prosperous Country within 30 years.”
(National Planning Authority 2013:4).
The BFPs set out:
• “previous financial year’s revenue performance against revenue budget estimates and revenue
projections for the next three years;
• Sector performance in previous financial years (expenditure and service delivery) measured
against set performance targets:
• Indicative allocations and sector objectives and performance targets for the next three years.
• Sector unfunded priorities and reallocations of funding.
• Draft Annual Work Plan and Budget Estimates, setting out in detail the budgetary inputs,
activities, and expected outputs and outcomes within the various sectors during the coming
financial year.“ (Local Government Budget Committee n.d. 7)
As shown in figure 2, there are three main tools at the local government (LG) level for planning and
budgeting:
• The District/Urban Local Government Development Plan (DDP) which contains the plans of the
Lower Local Governments and of the Sector Departments. All expenditures must be integrated in
the DDP, otherwise they are not authorized.
• The Local Government BFP describes the 3-year-strategy and expenditure planning of the LG.
• The budget and the work plan illustrate the expected expenditure of the LG as well as the
allocation of the financial means within the local level. (Local Government Budget Committee n.d.
7f).
Tools used to monitor and audit the implementation of the budget at the local level are yearly work
plans which also include quarterly reports of the different Local Governments in respective sectors.
The Budget Process in Uganda at the National Level
In this chapter we present the national budget process with a focus on the preparation and
formulation of the budget.
The process for the annual budget in Uganda begins with the review and update of the Medium Term
Expenditure Framework (MTEF) between July and August. In this period the government tries to
establish its resource base in regard to its development priorities (MoFPED 2009b).
The budget call circular sets in motion the process of budget preparation (stage 1, for details see
chapter 3.1.) and is distributed to all Ministries, Departments and Agencies as well as to the local
governments.
The budget circular specifies relevant rules for the development of Budget Framework Papers (BFP)
or budget proposals, including the expenditure ceilings. Its objectives are the following (Republic of
Uganda 2013b:1):
(i) “Communicate the indicative resource envelope and sector expenditure ceilings for FY 2014/15
and the Medium Term (…);
(ii) Communicate key [p]olicy and administrative guidelines related to preparation of the Budget
Framework Papers for the FY 2014/15 and the medium term;
(iii) Request all Chairpersons of the Sector Working Groups to convene sector meetings and embark
on the preparation of the Sector Budget Framework Papers for the FY 2014/15 and the Medium
Term based on the Terms of Reference (ToRs) for the SWG (…); and
(iv) Request you to submit your Sector Budget Framework Papers and Preliminary Detailed Budget
Estimates for the FY 2014/15 and the medium term by 15th November 2013.”
The first budget consultation conference takes place in October on the central level. It is held to
officially launch the beginning of the budget preparation process. The Ministry of Finance, Planning &
Economic Development (MoFPED) organizes the first national budget consultative conference.
According to MoFPED, involvement or participation of different stakeholders and actors in the
budget process is possible and also welcomed (Ministry of Finance, n.d.). The key participants at this
conference include Cabinet Ministers, Members of Parliament, technical officials from the central
agencies, Local Government officials, development partners and CSOs, the media and Private Sector
Organizations. This workshop represents an important step in the budget process as the BFP,
constituting the economic policies of the national government, are discussed and sector working
groups are formed (Uganda Debt Network 2006:20). It is followed by the Regional Local Government
Framework Paper Workshop. Here also BFP by the local government are discussed which need to be
submitted to the MoFPED by January.
The specific objectives of the workshop are to:
• Communicate the economic outlook for the country and the challenges encountered in budget execution
• Discuss the Budget Strategy and Priorities in light of the poverty eradication targets
• Discuss the Medium Term Expenditure Framework; and
• Disseminate the Budget Guidelines for the preparation of the Budget for the next Financial Year