Aid on Budget

STRUCTURE Budget law Annual Budgeting Cycle Budgeting of external financing (grants and loans) Challenges

Budget whithout cellings for external financing Budget law Differences among Rwanda, Uganda and Tanzania, in Mozambique: Budget whithout cellings for external financing The sectors can request for external finacing projects at all the time of the year if this resources for public investiments (specialy infrastructures)

in case of credits, concessional credits under the paris club terms Budget law Differences among Rwanda, Uganda and Tanzania, in Mozambique: in case of credits, concessional credits under the paris club terms There are centralized line in the ministry of finance for duties and VAT for external financing

Annual Budgeting Cycle: Feb –April elaboration of the MTEF March Joint review, donors pledges for n+1 Until 02/may Board of Ministers aprove the MTEF Until 31/May MPD/MF comunication of the cellings of the internal resources

So the other sectores from central, provincial, Distrital, submet their proposal to the MPD/MF until 31 of July After harmonization with the line sectores, the proposal of PES and OE are submeted to the Board of Ministers until 15 of September The GoM submet to the Parlament proposal of PES and OE to the year (n+1) unti 30th September Until 31 of december the Parliament aprove the budget for n+1 and the execution start at 1 of January

Budgeting of external financing (grants and loans): Budget surpport and BoP Common funds Direct project surpport Aind in kind

Budget surpport and BoP: We have 19 donors which agreed in budget surpport The GoM and donors are commited by Memorandum to archieve some targets and indicators under the PQG, PRSP, MTEF Annually take place an evaluation of the perfomance through quartly budget report (REO), General Account (CGE)

Budget surpport and BoP: Additionally there are internal and external auditing of the account External Audit are made by Administrative Court (TA) and Internal Audit by Internal Inspection of the Ministry of Finance (IGF)

Common Funds : a group of partners are organized to surpport together a specific sector Agrred by memorandum of understanding to join their resources The main priority sectors are financed by this way as for exemple Agricututre, Health, education, water and sanitation .

Direct project support: Each donors finance directly specific project This projects according by law can be incorporated in the budget in what ever time The sectors are forced to incorporated in the budget because of the need of the payment of duties, VAT and other customs services In The Case of the Donors Pay Directly: The accouting is made after by mecanismo called Incorporated Ballace Sheet for the propuse of quartly report (REO) and General Account

Aind in kind: The incorporatin of this in the budget is made by conversion in money value.

In the ambit of the Reform of the Financial Administrative System (SISTAFE), the GoM incentive all type of aid to go trough the single treasure account (on CUT). There for we still have some funds off cut.

At the moment, the GoM and donors are using ODAmoz data base (which record all external flows announced by the international partners), in order to incorporation more external financing in the Budget

The main challenges is to bring more external financing as possible into the budget trough budget surpport

THANKS!