Budget Process for Intergovernmental Transfers to Local Government - Ministry of Finance, Planning, and Economic Development
The budget process involves key changes to comply with the PFM Act, including specific deadlines for discussions, submissions, approvals, and performance contracts. Activities are structured from September to December, focusing on preparing the LG BFP and budget estimates, leading to finalization by May-June. Detailed budget calendars outline workshops, circulars, negotiations, approvals, and conferences involving local and central government entities.
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Presentation Transcript
Budget Process Consolidating intergovernmental transfers to local government MINISTRY OF FINANCE, PLANNING AND ECONOMIC DEVELOPMENT August 2015 1
Structure of the presentation 1. Key changes to the budget process 2. Sep-Dec: preparing the LG BFP 3. Jan-Apr: preparing LG budget estimates 4. May-Jun: finalizing LG budget estimates and performance contract 2
Key changes to the budget process Key dates revised to comply with PFM Act (2015): LG BFP discussed by Council by 31 Dec LG budget estimates submitted to Council by 31 Mar LG budget estimates approved by Council by 31 May Performance contacts signed before 30 Jun Performance contracts will only be signed if LG complies with sector budget requirements. Central Government to comment on: LG BFP by 1 Feb to feed into Budget Estimates draft Performance Contract by 15 Apr to feed into final Estimates 3
Budget Calendar (Sep-Dec) Budget Activities (Local and Central Government) By Regional Consultative Budget Workshops with local governments, discussing Draft Grant and Budget Requirements and LG Planning and Budgeting Guidelines Local Government negotiations with sectors to agree grant conditions and allocation formulae 20 Aug 10 Sep MOFPED issues the first Budget Call Circular, accompanied by the: IPFs, Grant and Budget Requirements 30 Sep Budget Desk prepares the first Local Government Budget Call Circular and shares with HoDs and LLGs. This includes: allocations to LLGs, Departments Departments and LLGs prepare inputs for the LG BFP and draft LG DPs and submit to Budget Desk, including Estimates, Workplan LG Planning and Budget Conference to discuss LLG, Department Workplans, investment decisions 5 Oct 20 Oct 31 Oct Budget Desk Compiles LG BFP and LG DPs before review by the Technical Planning and Executive Committee Approval by LG Executive Committee and Submission of the LG BFP to the MoFPED and Council 10 Nov 15 Nov National Consultative Budget Conference Discussion of the draft LG BFP by the Standing Committees of Council National BFP to Parliament Incorporating grant allocations in MTEF, Grant and Budget Information 30 Nov 31 Dec 31 Dec 4
Budget Calendar (Jan-Apr) Budget Activities By Review of LGBFPs by central government to assess compliance with overall and sector budget requirements. 1 Feb National BFP Approved by Parliament (commitment to allocation formulae + IPFs) 1 Feb MoFPED Issues the Second Budget Call Circular, incorporating IPFs and feedback on compliance with budget requirements 20 Feb Budget Desk prepares Second LG Budget Call Circular (revised IPFs, instructions to address feedback) 28 Feb Draft Departmental Budget Estimates and Annual Work Plans submitted to Budget Desk Budget Desk Compiles Draft Budget Estimates and Annual Work plans 10 Mar 15 Mar Review of the Budget Estimates and Annual Work plans by the Technical Planning Committee and the LG Executive Committee 25 Mar Laying of the Budget before LG Council and Submission of draft Performance Contract to MOFPED 1 Apr (Submission includes a response as to how adjustments have been made to ensure budget requirements have been met.) 5
Budget Calendar (May-Jun) Budget Activities By . MoFPED Lays the National Budget before Parliament 1 Apr Central Government reviews draft performance contracts and budgets to assess compliance with sector budget requirements. 15 Apr Approval of the Budget by Council 31 May Approval of the National Budget by Parliament 31 May Presentation of the National Budget Speech in Parliament 15 Jun Budget Execution Circular issued by MOFPED 30 Jun Submission of Final LG Performance Contract to MOFPED 30 Jun 6
Thank You Any Questions? 7
