MINISTRY OF FINANCE, PLANNING AND ECONOMIC DEVELOPMENT August 2015 Budget Process Consolidating intergovernmental transfers to local government 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) 4 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 20 Aug Local Government negotiations with sectors to agree grant conditions and allocation formulae10 Sep MOFPED issues the first Budget Call Circular, accompanied by the: IPFs, Grant and Budget Requirements30 Sep Budget Desk prepares the first Local Government Budget Call Circular and shares with HoDs and LLGs. This includes: allocations to LLGs, Departments 5 Oct Departments and LLGs prepare inputs for the LG BFP and draft LG DPs and submit to Budget Desk, including Estimates, Workplan 20 Oct LG Planning and Budget Conference to discuss LLG, Department Workplans, investment decisions31 Oct Budget Desk Compiles LG BFP and LG DPs before review by the Technical Planning and Executive Committee10 Nov Approval by LG Executive Committee and Submission of the LG BFP to the MoFPED and Council15 Nov National Consultative Budget Conference30 Nov Discussion of the draft LG BFP by the Standing Committees of Council31 Dec National BFP to Parliament Incorporating grant allocations in MTEF, Grant and Budget Information31 Dec

Budget Calendar (Jan-Apr) 5 Budget ActivitiesBy… 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 Desk10 Mar Budget Desk Compiles Draft Budget Estimates and Annual Work plans15 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 (Submission includes a response as to how adjustments have been made to ensure budget requirements have been met.) 1 Apr

Budget Calendar (May-Jun) 6 Budget ActivitiesBy…. MoFPED Lays the National Budget before Parliament1 Apr Central Government reviews draft performance contracts and budgets to assess compliance with sector budget requirements. 15 Apr Approval of the Budget by Council31 May Approval of the National Budget by Parliament31 May Presentation of the National Budget Speech in Parliament15 Jun Budget Execution Circular issued by MOFPED30 Jun Submission of Final LG Performance Contract to MOFPED30 Jun

Thank You Any Questions? 7