1

UGANDA APRM PROCESSUGANDA APRM PROCESS

Harmonizing the United Republic of Tanzanian APRM - NPoA with the existing Development Strategies and MTEF

Max OchaiSeptember 26, 2012

Dar es Salaam

National Program of Action: Costing and Funding

Presentation

Purpose:To share Ugandan experience in costing and funding the APRM-NPoA.

To inform recommendations, measures, challenges and strategies for the Tanzanian case.

2

The Story

Critical path defined.

Required inputs determined.

Costs estimated and aggregated.

Costs integrated into MTEF ceilings.

Single budget executed.

Challenge: resource constraints.

Recommendations: get priorities right!

3

Outline

IntroductionConcepts

Practical ExperienceCosting, Funding and Implementation

Key Challenges and LessonsEffort

Some Recommendations

Conclusion

4

1. Introduction

APRM-NPoA:A comprehensive program that guides and mobilizes a country’s efforts in implementing necessary changes to improve its state of governance and socio-economic development (vide APRM

Base Document).

Integral part of CRR:Key input into peer review process

5

1. Introduction Cont’d

Serves to present and clarify a country’s:Priorities identified

Activities undertaken

Responsibility of stakeholders

Derived from APRM-CSARPrepared in a participatory manner

Financed largely thru’ National Budget

6

1. Introduction Cont’d

MTEF:

a whole of government framework for supporting a strategic and policy-based approach to budget preparation:

a medium-term fiscal framework;

future costs of existing policy; and

sector strategies.

an integral part of the Budget Cycle

1. Introduction Cont’d

Consists of:a top-down resource envelope;

a bottom-up estimation of current and medium-term costs of existing policies; and, ultimately,

matching of these costs with available resources – budgeting!

1. Introduction Cont’d

Development Strategies (DS):Inclusive of NPoA, provides the roadmap for policy priorities

MTEF is where DS confronts budget realities

MTEF is, therefore, critical to effective implementation of DS

2. Uganda: Practical Experience

NPoA: MethodologyDesk research

Expert panel interviews – 200 units

Focus group discussions – 96 units

National sample survey – 1,588 HHs

Country-wide consultationsPublic hearings

Submission of memoranda by interest groups

10

2. …Experience Cont’d

NPoA: Results463 recommendations were made

o/w 307 recommendations in CRR

o/w 156 recommendations added by APR Panel of Eminent Persons

200 recommendations prioritized And, costed in NPoA over three years

11

2. …Experience Cont’d

Costing: Institutional ArrangementAPRM-NC

Costing Team:Professional Cost Accountants

Technical Experts from:– Central Government MDAs– Bank of Uganda

Costing Team mandated to cost NPoA

12

2. Cost of... Cont’d

Costing: MethodologyParticipatory approach

Stakeholders– Head of Public Service– MDAs– LGs– NDP Preparation Core Technical Team– APRM-NC

13

2. Cost of... Cont’d

Costing: MechanicsStep 1: Selected a specific objective

Step 2: Selected a required action

Step 3: Determined critical tasks

Step 4: Ascertained required inputs

Step 5: Determined associated costs

Step 6: Adjusted costs upwards, for:» Inflation, by 10% p.a.» Contingency, by 10% p.a.

Step 6: Validated costs14

15

2. …Experience Cont’dTotal cost estimated at US$ 4.9 billion, 2008/09 to 2010/11 FYs

NPoA was NOT resource-constrained

2. Cost of... Cont’d

Costing: Basic ReferencesBFP, 2008/09 – 2010/11 FYs

Inputs

PPDA Budget Guidelines, 2008/09 FYUnit costs

www.michaelpageinternational.comConsultancy rates

16

2. …Experience Cont’d

NPoA NDPThematic Paper on Governance

NDP MTEFSector Budget Framework Papers

MTEF BudgetAnnual Budget Call Circulars

17

2. …Experience Cont’d

Sources of FundsDomestic:

National Treasury – tax and non-tax

MDAs - own receipts

LGs - own collections

External:Development Partners

– Multi-lateral– Bilateral

18

2. …Experience Cont’d

Uses of FundsBudgetary:

Subjected NPoA to national, sectoral and sub-national prioritization

Provided for implementation of NPoA in National Budget, within MTEF

Extra-budgetary:Discretionary

19

2. …Experience Cont’d

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

2008/09 FY 2009/10 FY 2010/11 FY

Approved Budget Actual Spending

20

2. …Experience Cont’d

21

2. …Experience Cont’d

DisbursementsNational Budget:

Annual and Quarterly Workplans

Annual and Quarterly Releases

Annual and Quarterly Progress Reports

Extra-budget:Annual and Quarterly Workplans

Annual and Quarterly Requisitions

Annual and Quarterly Progress Reports22

2. …Experience Cont’d

Institutional MechanismMFPED

APRM National Focal Point:

Political oversight

Funding

MDAs, LGs and Private SectorImplementation

Monitoring implementation

Reporting progress23

2. …Experience Cont’d

APRM-NGC:Monitoring, at national level

Reporting, at national level

NPA, as APRM National Secretariat:Support services

24

2. …Experience Cont’d

CapacityInstitutional:

Equipment, systems and networks

Human:Technical officers and experts

Financial:Own and other funds

25

2. …Experience Cont’d

Risks and MitigationPerceived Risks

Failure to mobilize adequate funds

Inability to build requisite capacity

Mitigation MeasuresPrioritization of critical tasks

Performance Contracting

3. Challenges and Lessons

Key ChallengesConstrained resource envelope

assumed full support of Development Partners; and

Limited monitoring capacitylimited influence over resource allocation

27

3. … Lessons Cont’d

EffortSingle account system

Bank of Uganda

MTEFMulti-sectoral

Institution-based

Capacity-building and -development28

3. … Lessons Cont’d

LessonsInitial conditions matter

budget basics enhance implementation of MTEF

Strong case for a single budget agency and for NDP to be co-ordinated there;

Alternatively, clear institutional arrangements for managing integration

29

3. … Lessons Cont’d

Giving priority to strategic phase of budget preparation enhances stakeholder engagement

Strategic management of policy and planning process at sector level is key

SWGs have proven effective, facilitated by PEAP and NDP

30

4. Some Recommendations

1. Same macro-framework for MTEF and Plan

2. MTEF process should cover all sectors3. Budget comprehensiveness is key4. Opening up the budget-making process

to stakeholders as part of the development of the MTEF

5. Improved costing and target-setting to facilitate Parliamentary engagement in debate about the budget and the Plan

31

5. Conclusion

MTEF process is key to effective implementation of NPoA

MTEF must cover whole Government

Apply same macro-fiscal framework for MTEF and Plan

Cost required inputs, for critical activities.

Execute a comprehensive budget

32

33

END

THANK YOU