Aligning Budget with National Development Plan for Local Governments in Uganda
Uganda aims to become an upper-middle-income country by 2040, focusing on improving the well-being of its citizens. The National Development Plan II targets achieving lower-middle-income status, emphasizing inclusive growth and socio-economic indicators at the household level. Managing for Development Results and compliance play crucial roles in budget alignment for local governments. Understanding the income categories and thresholds is essential for effective planning and resource allocation.
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ALIGNMENT OF BUDGET TO ALIGNMENT OF BUDGET TO NATIONAL DEVELOPMENT PLAN NATIONAL DEVELOPMENT PLAN (NDPII) (NDPII) ISSUES FOR LOCAL ISSUES FOR LOCAL GOVERNMENTS GOVERNMENTS National Planning Authority National Planning Authority 9/7/2024 1
Presentation outline Presentation outline Introduction Introduction NDPII and Middle Income Status NDPII and Middle Income Status Alignment of budget instrument to NDPII and LGDPs Alignment of budget instrument to NDPII and LGDPs Alignment of the Budgets to the LGDP/SDP/NDPII Alignment of the Budgets to the LGDP/SDP/NDPII Managing for Development Results Managing for Development Results The Certificate of Compliance The Certificate of Compliance 9/7/2024 2
Introduction Introduction Uganda Vision 2040 aspirations are to become an upper middle income country by 2040 It is envisaged Uganda will achieve a per capita income of USD 9,500 The implication is improvement in the wellbeing of Ugandans commensurate to upper middle income standards 9/7/2024 3
Understanding Understanding Middle Middle Income Income No No. . Category Category Income Income Threshold Threshold (USD) (USD) 1 1 Low-income 1,025 or Less 2 2 Lower Middle Income 1,026- 4,035 3 3 Upper Middle Income 4,036- 12,475 4 4 High Income 12, 476 or more Attaining lower middle income status may not necessarily reflect improvements in the citizens welfare Nigeria, Ghana, Angola, Swaziland, and Zambia have attained middle income status with high poverty levels 46%, 24.2%, 36.6%, 63%, and 60.5% respectively. 9/7/2024 4
NDPII NDPII and and Middle Middle Income Income Status Status The NDPII targets achievement of a lower middle income status with a per capita income of USD 1,033 by 2020 Ugandans including children who are not working on average should each be earning at least USD 1033(UGX 3.5million) annually Or USD 86(UGX 290,000) monthly 9/7/2024 5
NDPII NDPII and and Middle Middle Income Income The middle income goal for Uganda is broader than international definition of increasing per capita income Looks at inclusive growth, anchored at household level and includes improving socio-economic indicators i.e. adequate food, longer years of schooling, fewer children dying from preventable diseases, reduced incidence of malnutrition, increased employment levels , etc. reduced illiteracy, 9/7/2024 6
Ugandas Uganda s Milestones Milestones towards towards Development Indicator Targets NDPII Base- Year 2012/13 NDPII 2019/20 Vision 2040 Income per Capita (USD) Average economic growth rate* Percentage of people living on less than USD 1 a day Percentage of national labour force employed Labour Productivity (GDP per Worker - USD) 743 1,033 9,500 5.2 19.7 75.4 581 5,106 2,441 14 54.5 54 438 31 6.2 6.3 14.2 79 977.77 7,871.35 5,217.65 18 60 44 320 25 4.5 8.2 5.0 94 6,790 24,820 25,513 24 85 4 15 0 3.0 Agriculture Industry Services Forest Cover (per cent Land Area) Life Expectancy at birth Infant mortality rate per 1,000 live births Maternal mortality rate per 100,000 live births Child Stunting as per cent of under-5s 9/7/2024 Total Fertility Rate 7
ALIGNMMENT ALIGNMMENT OF OF LGDP LGDP TO TO NDPII NDPII The LGs contribute to the achievement of the NDPII/Sector Objectives LGs must then align their Plans and Budgets to the NDPII/SDPs objectives and priority/focus areas, including the NDPII interventions The LGDPs should be aligned to the NDPII (content and timeframe) The priorities of the LGDPs should be targeted towards attainment of Vision 2040 and objectives of the NDPII This is possible through linking planning, budgeting, and implementation to Results (i.e. inputs, activities, outputs, outcomes and impacts) at all levels 9/7/2024 8
LACK OF ALIGNMMENT LACK OF ALIGNMMENT 9/7/2024 9
Alignment Alignment of of the the Budgets Budgets to to the the LGDP/SDP/NDPII LGDP/SDP/NDPII The issue of non-alignment of LG budgets and the National Budget is attributed to non-alignment of OBT outcomes/outputs to the NDPII outcomes/outputs To address this, the NDPII Results and Reporting Frameworks were developed both for the MDAs and LGs (linked to the National Standard Indicator Framework and Budget Results Matrix for FY 2016/17) Alignment can be realized by ensuring that the budgeting tool (OBT/PBB) domains (Outcomes and outputs and the corresponding harmonized with the NDPII Results Framework indicators) are 9/7/2024 10
Alignment Alignment of of the the Budgets Budgets to to the the LGDP/SDP/NDPII LGDP/SDP/NDPII The issue of non-alignment of LG Investment Profiles to priorities in the LGDP The LG Investment profiles should contain projects that are LGDP/SDP/NDPII priorities/focus areas consistent with the The alignment of budgets to Plans can be realized through ensuring that OBT domains (outcomes and outputs and the corresponding indicators) are harmonized with Framework the NDPII Results 9/7/2024 11
Alignment Alignment LGDP/SDP/NDPII LGDP/SDP/NDPII of of the the Budgets Budgets to to the the . . LGBFPs and AWPs/Budget must be drawn from the NDPII/Sector/LG objectives, priorities and areas of focus. The LGIP should contain projects that are consistent with the LGDPs/SDPs/NDPII objectives, priorities and focus areas. 9/7/2024 12
Managing for Development Results Managing for Development Results Involves five core components/stages: Setting goals and agreeing on targets and strategies in the LGDPs Allocating the available resources to activities in the LGBFPs/AWPs that will contribute to the achievement of the desired results; Monitoring and evaluating whether the resources allocated are making the intended difference; Reporting on performance to the stakeholders; and Providing feeding back information into decision- making. 9/7/2024 13
The The Certificate Certificate of of Compliance Compliance PFMA, PFMA, 2015 a a certificate certificate of Budget Budget of 2015, , Sections Sections ( (6 6) ) and of compliance compliance ( (CoC of the the previous previous FY and ( (7 7) ) require CoC) ) for FY require NPA for the NPA to the Annual Annual to issue issue The The CoC budgets budgets to CoC institutionalises institutionalises the to the the national national planning the alignment alignment of planning frameworks frameworks of the the annual annual The The assessment assessment of consistence consistence of with with the the NDP/LGDP of compliance compliance thus of the the Annual Annual Budget NDP/LGDP thus ascertains ascertains the Budget and and NBFP/LGBFP the NBFP/LGBFP 9/7/2024 14
Objective Objective of of Certificate Certificate of of Compliance Compliance To strengthen planning processes by ensuring complete alignment in the national planning framework right from setting of the strategic vision and focus to budgeting for the NDP and its implementation. consistency and 9/7/2024 15
Relationship Relationship between between NDP, NDP, CFR, CFR, NBFP NBFP and and AB AB as as per per PFM PFM Act Act The assessment of compliance of the AB is in line with section 13(6) and 13(7) of the PFM Act, 2015. Compliance shall be assessed based on consistence of the AB with the CFR; the NDP and NBFB 9/7/2024 16
Relationship Relationship between between NDP, NDP, CFR, CFR, NBFP NBFP and and AB AB as as per per PFM PFM Act Act 13 (6) 13 (6) NDP NBFP AB CFR 9 (3) 13 (6) 4 (1), 4(3) & 5(1) a (i) 9 (3) 9/7/2024 17
Framework Framework for Budget Budget Compliance Compliance for Assessment Assessment of of Annual Annual Assesses the consistency of the AB with the LGBFP/NBFP and the NDP*** The framework applies to both central and local government levels. i. LG Level Assessment (assess whether LG votes are focused on delivering NDPII and LGDP goals. ii. LG Department Level Assessment (assesses whether Departments are primarily focused on delivering LGDP objectives and priorities); For the CoC for FY2016/17, assessment will be carried out at LG level 9/7/2024 18
The The CoC CoC at at LG LG Level Level Areas Areas of Local Governments will be assessed to ensure there is: of assessment assessment at at the the Local Local Governments Governments Level Level An approved LG Development Pan Consistency of LG Development Pan with the NDPII Consistency of LG BFP with LG Development Pan Consistency of Annual Budget with LGBFP, LG Development Plan/Sector Development Plan/NDPII Consistency of release performance with Annual Budget The implication for non-compliance is that the LG may be required to justify before parliament the reason why they should continue receiving funding 9/7/2024
The End 9/7/2024
