LINKING THE BUDGET TO THE NATIONAL DEVELOPMENT PLAN

MINISTRY OF FINANCE, PLANNING & ECONOMIC DEVELOPMENT

ANDNATIONAL PLANNING AUTHORITY

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Presentation Outline• Introduction

• Priorities for 2014/15

• Linkage between NDP and the Budget

• NDP II Process

• Conclusion2

IntroductionObjectives of the Presentation • Guide Votes on alignment of their Budgets to

the NDP priorities• To demonstrate the allocation of the Budget

to the NDP priority areas thus far• To communicate the NDP II preparation

process

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Introduction • Government approved the comprehensive

National Development Planning Framework (CNDPF) policy in 2007;

• Provides a clear perspective vision and long-term plans to articulate the country’s strategic development objectives and priorities against which medium and short term plans are anchored.

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IntroductionElements of the CNDPF

–It is comprised of five principal elements • 30 Year National Vision. • 10 Year National Development Plan• 5 Year National Development Plans• Sector Investment Plans• Local Government Development Plans (DDP & MDPs)

• Annual Plans• Annual Budgets

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IntroductionUganda Vision 2040

•In April 2013 Government launched Uganda Vision 2040 whose aspirations are to transform Uganda from a predominantly low income country to upper middle income country within 30 years with per capita income of USD 9500.

•Uganda Vision 2040 is to be achieved through implementation of the NDPs which are financed mainly through the National budget.

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IntroductionNational Development Plan FY 2010/11-14/15•The NDP is the overarching Government plan which stipulates the medium term strategic direction, development priorities and implementation strategies;•The theme of the NDP is Growth, Employment and Socio-economic Transformation. • Sectors are responsible for developing policies and

plans, which must be aligned with the NDP;• The LGDPs are majorly linked to the NDP through the

SIPs7

The Key NDP Priorities 1. Accelerating infrastructure development (energy,

ICT, transport). 2. Increasing agricultural production and productivity 3. Improve on community’s social well-being and

human development ( Education and Health). 4. Water for Production5. Governance and accountabilityNote: Other priorities may emerge in the course of

implementation of the National Plan e.g. disasters;

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Priority cont.....1. Accelerating infrastructure development LGs will focus on:•Increase investment in value addition; •Rehabilitation and routine maintenance of roads and bridges2.Increasing Agric. Production & Productivity: LGs should focus on the following;•Use of improved seeds, fertilisers and provision of extension services•Promotion of the 10 key commodities•Small scale and affordable technologies such as walking tractors•Agro zoning

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Priority cont.....

3. Improve on community’s social well-being & Human DevelopmentLGs should focus on;•Improving provision of social services delivery especially in education and health4. Water for production LG should focus on:•Rain water harvesting for production;•Small scale irrigation technology

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Priority cont.....5. Governance & AccountabilityLGs should focus on:•The rule of law and accountability•Monitoring and supervision•Effective and efficient use of limited resources•Effective implementation of Government programme

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Why harmonise the Budget and the NDP

• Priorities have to be financed;• Aligning planning and budgeting cycle of

Government;• Rationalisation of budgeting and planning

instruments;• Participation in planning and budgeting processes

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Linkage between the NDP and the Budget

• The budget is the main tool by which Government allocates resources to implement its plans and address emerging policy priorities;

• The Budget Framework papers and MTEF translates policies into implementable plans;

• The framework for linking policies and plans to the budget is as demonstrated below:

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Linkage between the NDP and the Budget

Policy Strategic Operational

SectorBFP

Ministerial Policy

Statements

MTEF & NBFP

Annual Budget

NDP

Sector Investment Plan

Plans

Overal

lSector

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Linking Budget to NDP Cont......

1. Medium Term Exp. Framework (MTEF)• The MTEF is a framework linking policies and

plans to the budget;• MTEF rationalizes plan with finances in an

integrated manner;• Reduces the imbalance between what is

affordable, available and expenditure requirement.

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Linking Budget to NDP Cont......

2. Medium Fiscal Framework (MTFF)-Res.Env• Sets fiscal policy and macroeconomic targets;• It sets out the hard budget constraint;3. The National Budget Framework Paper (BFP);• The Government Budget strategy document

linking Government’s overall policies and the budget.

4. The Budget:• An estimate of Government revenue and

expenditure prepared annually.

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Challenges of Resource Allocation

• Limited resource envelope vis-à-vis increasing demand for resources;

• Financing productive sectors vs. other enabling sectors;

• Poor prioritization of resource allocation at sector level;

• Allocative inefficiency;

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Mapping Budget to the NDP

• The excel sheet below shows budget provision against the NDP projections (FY 2010/11-FY 2013/14):

• Mapping National Budget - NDP.xlsx

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THE NDP II PREPARATION PROCESS

• The current NDP (NDP I) is coming to an end (June 2015)

• NDP II will set the agenda for the next five years

• NDP II must be in place by September 2014 to inform the budget process for 2015/16 and also other stakeholders plans like: CSOs, private sector and Development Partners

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What is likely to inform NDP II

• The Vision 2040:– Vision 2040 highlights the key opportunities and fundamentals

for government Investments;– The Opportunities and fundamentals e.g. Tourism infrastructure

and Minerals Infrastructure

• NDPI Mid Term Review (MTR)– Emerging issues: poor implementation; weak alignment of NDP to

budget; underfunding NDP core projects; inadequate human resources

• On-going Regional and International discussions – EAC heads of state discussions, MDGs, etc

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Approach to the production of NDPII

• Alignment of implementation plans and Budgets with NDPII– Sector Investment Plans and Higher LG

Development Plans– Budget– Other stakeholder plans (Development

Partners, CSOs, Private sector)

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VISION 2040

SECTOR Dev’t PLANS

SECTOR Dev’t PLANS

SECTOR Dev’t PLANS

NATIONAL DVELOPMENT PLANS (NDPs)

DDPs/ MDPs

 

SETOR Dev’t PLANS

PLANNING FRAMEWORK

Clearly aligned objectives and indicator

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Vision Priorities

NDP Objectives & Indicators

Sector Objectives & Indicators

DDP/MDP Objectives & Indicators

Approach cont….• Implementation Modalities

– Improve capacity to implement(Human resource and institutional capacities)

– Address challenges of Implementation (Procurement processes, resource mobilisation among others.)

• A multi-sectoral core team has been constituted

• National development issues paper has been developed

• National consultations are planned

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The NDP II proposals will cover:– Development of a detailed macro-economic

strategy;– the SIP/SDPs and LGDPs reviewed and aligned to

NDPII priorities;– Making sure cross cutting Issues are well addressed

(e.g. population, social protection, human rights, gender, culture and national values, Environment etc.) ;

– Instruments of monitoring and evaluation are appropriately developed;

– Addressing issues of physical planning.

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Timelines

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Tasks 2013 2014 2015

Jul AugSep

Oct Nov Dec Jan

Feb Mar Apr May Jun Jul Aug

Sep Oct Nov Dec Jan

Feb Mar

Preliminary Activities

Macro-economic strategy

Sector Development Plans

Local Government Development Plans

Cross cutting issues

Implementation, Monitoring and Evaluation

Spatial Reflection of NDP2

Drafting and Approval Process for NDPII

NDP2 Dissemination

Conclusion• National BFP represents the strategic link

between Government’s overall policies (NDP) and the annual budget;

• Resource allocation should be based on NDP priorities and on emerging challenges;

• The budget for FY 2014/15 should be in line with above priorities.

• Infrastructure development is expected to remain a key priority under NDP II;

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THANK YOU FOR LISTENING

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