1. National Program of Action: Costing and Funding
UGANDA APRM PROCESS
National Program of Action: Costing and Funding
Harmonizing the United Republic of Tanzanian APRM - NPoA with the existing Development Strategies and MTEF
Max Ochai
September 26, 2012
Dar es Salaam

2. Presentation Purpose:
To share Ugandan experience in costing and funding the APRM-NPoA.
To inform recommendations, measures, challenges and strategies for the Tanzanian case.

3. The Story Critical path defined. Required inputs determined.
Costs estimated and aggregated.
Costs integrated into MTEF ceilings.
Single budget executed.
Challenge: resource constraints.
Recommendations: get priorities right!

4. Outline Introduction Practical Experience Key Challenges and Lessons
Concepts
Practical Experience
Costing, Funding and Implementation
Key Challenges and Lessons
Effort
Some Recommendations
Conclusion

5. 1. Introduction APRM-NPoA:
A comprehensive program that guides and mobilizes a country’s efforts in implementing necessary changes to improve its state of governance and socio-economic development (vide APRM Base Document).
Integral part of CRR:
Key input into peer review process

6. 1. Introduction Cont’d Serves to present and clarify a country’s:
Priorities identified
Activities undertaken
Responsibility of stakeholders
Derived from APRM-CSAR
Prepared in a participatory manner
Financed largely thru’ National Budget

7. 1. Introduction Cont’d MTEF:
a whole of government framework for supporting a strategic and policy-based approach to budget preparation:
a medium-term fiscal framework;
future costs of existing policy; and
sector strategies.
an integral part of the Budget Cycle

8. 1. Introduction Cont’d Consists of: a top-down resource envelope;
a bottom-up estimation of current and medium-term costs of existing policies; and, ultimately,
matching of these costs with available resources – budgeting!

9. 1. Introduction Cont’d Development Strategies (DS):
Inclusive of NPoA, provides the roadmap for policy priorities
MTEF is where DS confronts budget realities
MTEF is, therefore, critical to effective implementation of DS

10. 2. Uganda: Practical Experience
NPoA: Methodology
Desk research
Expert panel interviews – 200 units
Focus group discussions – 96 units
National sample survey – 1,588 HHs
Country-wide consultations
Public hearings
Submission of memoranda by interest groups

11. 2. …Experience Cont’d NPoA: Results 463 recommendations were made
o/w 307 recommendations in CRR
o/w 156 recommendations added by APR Panel of Eminent Persons
200 recommendations prioritized
And, costed in NPoA over three years

12. 2. …Experience Cont’d Costing: Institutional Arrangement APRM-NC
Costing Team:
Professional Cost Accountants
Technical Experts from:
Central Government MDAs
Bank of Uganda
Costing Team mandated to cost NPoA

13. 2. Cost of... Cont’d Costing: Methodology Participatory approach
Stakeholders
Head of Public Service
MDAs
LGs
NDP Preparation Core Technical Team
APRM-NC

14. 2. Cost of... Cont’d Costing: Mechanics
Step 1: Selected a specific objective
Step 2: Selected a required action
Step 3: Determined critical tasks
Step 4: Ascertained required inputs
Step 5: Determined associated costs
Step 6: Adjusted costs upwards, for:
Inflation, by 10% p.a.
Contingency, by 10% p.a.
Step 6: Validated costs

15. 2. …Experience Cont’d
Total cost estimated at US$ 4.9 billion, 2008/09 to 2010/11 FYs
NPoA was NOT resource-constrained

16. 2. Cost of... Cont’d Costing: Basic References
BFP, 2008/09 – 2010/11 FYs
Inputs
PPDA Budget Guidelines, 2008/09 FY
Unit costs
Consultancy rates

17. 2. …Experience Cont’d NPoA NDP NDP MTEF MTEF Budget
Thematic Paper on Governance
NDP MTEF
Sector Budget Framework Papers
MTEF Budget
Annual Budget Call Circulars

18. 2. …Experience Cont’d Sources of Funds Domestic: External:
National Treasury – tax and non-tax
MDAs - own receipts
LGs - own collections
External:
Development Partners
Multi-lateral
Bilateral

19. 2. …Experience Cont’d Uses of Funds Budgetary: Extra-budgetary:
Subjected NPoA to national, sectoral and sub-national prioritization
Provided for implementation of NPoA in National Budget, within MTEF
Extra-budgetary:
Discretionary

20. 2. …Experience Cont’d

21. 2. …Experience Cont’d

22. 2. …Experience Cont’d Disbursements National Budget: Extra-budget:
Annual and Quarterly Workplans
Annual and Quarterly Releases
Annual and Quarterly Progress Reports
Extra-budget:
Annual and Quarterly Requisitions

23. 2. …Experience Cont’d Institutional Mechanism MFPED
APRM National Focal Point:
Political oversight
Funding
MDAs, LGs and Private Sector
Implementation
Monitoring implementation
Reporting progress

24. 2. …Experience Cont’d APRM-NGC: NPA, as APRM National Secretariat:
Monitoring, at national level
Reporting, at national level
NPA, as APRM National Secretariat:
Support services

25. 2. …Experience Cont’d Capacity Institutional: Human: Financial:
Equipment, systems and networks
Human:
Technical officers and experts
Financial:
Own and other funds

26. 2. …Experience Cont’d Risks and Mitigation Perceived Risks
Failure to mobilize adequate funds
Inability to build requisite capacity
Mitigation Measures
Prioritization of critical tasks
Performance Contracting

27. 3. Challenges and Lessons
Key Challenges
Constrained resource envelope
assumed full support of Development Partners; and
Limited monitoring capacity
limited influence over resource allocation

28. 3. … Lessons Cont’d Effort Single account system MTEF
Bank of Uganda
MTEF
Multi-sectoral
Institution-based
Capacity-building and -development

29. 3. … Lessons Cont’d Lessons Initial conditions matter
budget basics enhance implementation of MTEF
Strong case for a single budget agency and for NDP to be co-ordinated there;
Alternatively, clear institutional arrangements for managing integration

30. 3. … Lessons Cont’d
Giving priority to strategic phase of budget preparation enhances stakeholder engagement
Strategic management of policy and planning process at sector level is key
SWGs have proven effective, facilitated by PEAP and NDP

31. 4. Some Recommendations Same macro-framework for MTEF and Plan
MTEF process should cover all sectors
Budget comprehensiveness is key
Opening up the budget-making process to stakeholders as part of the development of the MTEF
Improved costing and target-setting to facilitate Parliamentary engagement in debate about the budget and the Plan

32. 5. Conclusion MTEF process is key to effective implementation of NPoA
MTEF must cover whole Government
Apply same macro-fiscal framework for MTEF and Plan
Cost required inputs, for critical activities.
Execute a comprehensive budget

33. END
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