1. Aid on Budget

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

3. 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)

4. 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

5. 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

6. 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

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

8. 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)

9. 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)

10. 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 .

11. 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

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

13. 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.

14. 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

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

16. THANKS!