1. The Data needs of The Parliamentary Budget Office Opportunities and Challenges (The Uganda Case) The Association of Budget Offices Conference Montreal, Canada 17th -19th June Presented by Wanyaka Samuel H. Director – Parliamentary Budget Office June 2013

2. Introduction The Presentation is to:
Highlight the reforms in Uganda’s Budget Process;
Inform the participants about the types of analyses carried out the Uganda PBO.
Indicate the data needs of the Uganda Parliamentary Budget Office.
Outline the basic sources of data for the PBO.
To highlight some challenges for obtaining data.
Efforts to overcome the challenges.
Conclusion.

3. Laws Regulating the Budget Process
The Budget Process in Uganda is regulated by a legal framework that includes the following among others:-
Constitution,
Public Finance and Accountability Act 2003,
Budget Act 2001 (copy available) and
Other laws and regulations which provide mandates for economic activities
such as the Local Government Act e.t.c and so on.

4. The Budget Act (1)
Arose out of a private members bill and found popular support in Parliament;
This law was aimed at making the Budget process more transparent, participatory and all inclusive;
It mandates early and continuous participation of parliament in the entire budgetary cycle and;
Provides opportunities for all stakeholders to actively participate in the budget process.

5. The Budget Act (2) The Act establishes among others;
A Budget Committee of Parliament, which comprises all chairpersons of other Parliamentary Committees as ex-officio members whose role and functions include budget scrutiny and oversight.
The Parliamentary Budget Office, whose role and functions are a subject to be discussed in this paper.

6. Functions of the Budget Committee
Focusing on the preliminary estimates and the macroeconomic plan and programs and submitting the recommendations to speaker.
Considering the National Budget and compiling amendments and referring them to the relevant Committees.
Carrying on such other functions relating to the Budget as may be assigned to it by Parliament under this Act or other laws.

7. The Parliamentary Budget Office (PBO)
It is established by the Budget Act as technical department for providing Parliament and its Committees with,
Objective
Timely and
Independent economic and financial analysis of the economy and the national budget in order to advise parliament and support its budget oversight roles.

8. Specific Functions of PBO (1)
Providing an up-to-date budget-related information to all Committees in relation to their jurisdiction
Submitting reports on, but not limited to,
economic forecasts,
budget projections and
options for reducing the budget deficit;
Identifying and recommending on Bills that provide an increase or decrease in revenue and the Budget;
Preparing analytical studies of specific subjects such as financial risks posed by Government sponsored enterprises and financial policy; and
Giving technical advice to Parliament and Committees on the economy and the budget.

9. Structure of PBO
The functions of Budget Office fall under two divisions namely
Macroeconomics and Sectoral Analysis
Fiscal Analysis and;
A Financial Programming Section

10. Staffing of PBO
The Parliamentary Budget Office is staffed with professional staff as stated by Section 20 of the Budget Act.
Indeed, while PBO’s activities are spelt out in the Budget Act, Parliament as a whole and its Committees make requests for advice or analysis on any issues related to the budget and economic performance.
This makes the PBO the prime source of Budgetary and Economic information for Parliament and its Committees.

11. Analysis Carried out by PBO
Budget Analysis broadly refers to
examines the extent to which the revenue and expenditure targets meet the set objectives and levels of budget deficits that results
Economic Analysis:- Dealing mainly with the performance of the Economy.
Eg. Inflation, Employment, GDP growth, BOP, Interest rates, exchange rates, Money demand and Supply.

12. Analysis of the Resources (Revenue) Side
The Budget Office assists members of parliament to analyse the resource side of the budget, which is governed by the main objective of mobilizing funds for meeting public expenditure.
These resources measures include,
domestic resources from taxation revenue (comprising income tax, Value Added tax (VAT),
International trade taxes,
local excise taxes),
non-tax revenue and
local borrowing from both bank and non bank sources.
There are also External Resources from Loans and Grants.

13. Objectives of taxation
Apart from resource mobilization, taxation may have other objectives, whose impact PBO advises Parliament about, such as:-
Regulation to correct market imperfections,
Guiding and redirecting economic activities of Production, and Investment and Consumption,
Industrial protection,
Public safety,
Strategic motive,
Equity in resource distribution and
Asserting Administrative Authority

14. Analysis of Expenditure Side
Public expenditure refers to the process by which the government expends its resources to achieve the various national objectives.
Public expenditure is largely governed by specific objectives such as
The need to correct market failures
Provision of governance
Strategic considerations
Social welfare/wellbeing
Strategic interventions etc.

15. Budget Deficit
A combination of revenue and expenditure yields an important variable known as the budget deficit.
The budget deficit occurs when domestic resources cannot fully fund the desired expenditure.
The deficit can be funded by local sources or external sources.
Each method of funding the deficit has implications on the macroeconomic objectives.

16. Macroeconomic objectives include:
Low and stable inflation (the rate at which prices rise affect the well-being of people especially the fixed income earners and disrupt planning both for government and private individuals and entities.
Employment creation.
Low and stable interest rates to promote investment.
Stable exchange rates to promote exports.
Reasonable level of foreign exchange reserves for any eventual international shocks etc..

17. Data needs of PBO The main data needs of PBO include
Data on Performance of the Budget Financing i.e Resources projections, approved and outturns of:-
Tax, Non-tax, Loans, Grants, Arrears;
Data on Performance of the Budget Expenditure i.e Expenditures projections, approved and outturns of:-
By Sector and Agency and Economic Activity
Data of expenditure in relation to planned objectives and activities.
Data on releases of funds against budgetary allocations to various spending units.
Data on resource outturns against the projections.
Data on physical outputs of various forms of public expenditure through physical inspection and public hearings by identifying potential for budgetary wastes and leakages.
Data on the Performance of the Economy such as Inflation, GDP sector performance, Monetary data, financial data, external sector data.

18. Sources of data for the PBO.
Submissions of Government reports to Parliament;
Uganda Revenue Authority;
Uganda Bureau of Statistics;
The Central Bank of Uganda;
Public hearings of Committees;
Field oversight visits by staff and Committees;
Petitions and Memoranda to Parliament;
Public Libraries;
Internet resources.

19. Challenges for obtaining data.
Inadequate capacity and resources to obtain primary data hence reliance on secondary data;
Inadequate analytical capacity of staff;
Inadequate equipment for Analysis by staff;
Lack of protocols for online access to Government databases;
Delay and reluctance of agencies in providing data and information;
Un availability of data by agencies;
Large and widespread informal sector.

20. Efforts to overcome the challenges.
Training and equipping for staff of PBO;
Obtaining secondary data from relevant departments;
Use of powers and privileges of Parliament laws to obtain data;
Using assumptions to estimate where data is not available;
Compelling user departments to compile relevant data;
Encouraging formalization of the informal sector (An area where we need support);
Creating a databank of Key economic and Social Variables within PBO

21. Conclusion
The analysis and advice offered by Parliamentary Budget Office (PBO) is objective and impartial.
The technical content of the advice is not influenced. Any Committee Chairperson or Member of Parliament may put a request for analysis or advice to the PBO.
PBO does not manage the budget of the Parliamentary Commission, but advises Parliament on budgets of all public agencies.
A number of challenges in its operation still exist but PBO have served as a model.
Many Parliaments in Africa who have taken lessons to learn from us make their own systems better.
The Public Finance Bill 2012 before Parliament seeks to repeal the Budget Act, we need community support and prayers.

22. Thank you for your attention.