Planning and Budget Process Aggrey Tisa Sabuni Under Secretary Ministry of Finance and Economic Planning Government of Southern Sudan

Annual Budget Process  A consultative process which begins in June with the convening of budget sector working groups  All Ministries and spending agencies are a part of a budget sector working group  Budget sector groups are expected to plan for expenditures for the medium term  Final report of each of the groups are presented by end August  Each budget sector group has representatives from the donor community who take active part in the deliberations

Budget Call Circular  The budget call circular is issued by the Ministry of Finance and Economic Planning to all Ministries and spending agencies in September  The circular outlines the budget process, the forms to be filled in and sent to the Ministry of Finance and Economic Planning and the timelines for doing so  Forms for 2008 Budget will include an output component, to link expenditures to plans

Budget Ceilings The resource envelope is worked out in consultation with GoNU, particularly with respect to Oil Revenues The allocations for each spending agency is based on their plans, the expenditure performance during the year and the availability of resources The ceilings are communicated only after approval by the Council of Ministers Spending Agencies are required to budget strictly within their ceilings

Presentation of the Budget to the Legislative Assembly and Approval  The Minister for Finance and Economic Planning presents the budget to the Legislative Assembly by end November or early December  The Legislative Assembly debates the proposals and makes amendments to the Appropriation Bill  Budget execution begins in January

Problems faced in 2006  There was a lot of extra budgetary expenditure due to unforeseen requirements of Government  Payment systems were just beginning to be put in place and rules were often not adhered to  There were delays in tracking expenditure due to the delay in the appointment of the Accounting Agent  Adequately trained staff, particularly in line ministries, were not available  Appointments of senior officials were made late in the year

Steps taken to address the problems  Budget preparation workshops held in 2006 for Government of Southern Sudan staff and states  Workshop conducted early 2007 for senior functionaries in Government of Southern Sudan to sensitize them on the new payment system and its requirements  Training of accountants in GoSS and States being organized

Challenges for GoSS  The single treasury system in now functional but more training of staff needed  More awareness needed among all personnel of the need for adhering to rules  Quicker reporting of expenditures needed for better planning and for taking mid course corrective action  Reporting on revenues and expenditures to the Legislative Assembly on a quarterly basis  The Cash Management Committee has to start functioning soon so that expenditures are limited to the availability of cash  Ministries have to plan for commitments and expenditures better- better planning process can be achieved through budget sector plans  Prepare a draft set of objectives for GoSS Budget Framework Plan based on draft budget sector plans for the medium term in 2007

Challenges for States  Ensure that all States have approved budgets  Training for state staff in the area of Public Financial Management a priority  To get the Core Fiduciary Systems Projects for the States up and running as soon as possible