2. 1 LESOTHO APRM PROCESS Technical National APRM Workshop on Harmonizing the Lesotho APRM NPoA with the existing Development Strategies and the MTEF and Budget Max Ochai MASERU, Lesotho February 27, 2014 National Program of Action: Funding and Implementation

3. Presentation Purpose: To share Ugandan experience in funding and implementation of APRM NPoA To inform the Lesotho case 2

4. The Word Effective implementation of a SMART NPoA can improve state of governance and accelerate socio-economic development: Apply same macro-fiscal framework to NSDP – inclusive of NPoA - and MTEF Undertake MTEF process to implement NSDP Execute a comprehensive budget 3

5. Outline Introduction Uganda: planning and budgeting processes NPoA in Practice Ugandan Key Challenges and Lessons Effort Some Recommendations Lesotho Conclusion 4

6. 1. Introduction Dove-tail Planning process Evaluation Macro-economic analysis –Situation analysis »Prioritization [...NDP confronts Budget...] –Setting resource ceilings Estimation of resource envelope Public expenditure review Budgeting process Rationale for merger of Planning and Fiscal Authorities

7. 1. Introduction Contd Budget annual plan Statement of expenditure and its funding according to IMF (2001) GFS Manual: Revenues (Tax, Non-tax and Grants) Expenditure Financing (Loans) G = T + A + D

8. 7 2. Uganda: NPoA in Practice Total cost estimated at US$ 4.9 billion, 2008/09 to 2010/11 Fiscal Years NB: NPoA was NOT resource-constrained

9. 2. …Practice Contd Sources of Funds Domestic: National Treasury MDAs - own receipts LGs - own collections External: Development Partners –Multi-lateral –Bilateral 8

10. 2. …Practice Contd Uses of Funds Budgetary: Subjected NPoA to national, sectoral and sub-national re-prioritization process Provided for implementation of NPoA in National Budget, within MTEF Extra-budgetary: Discretionary 9

11. 2. …Practice Contd Disbursements National Budget: Annual and Quarterly Workplans –Annual and Quarterly Requisitions »Annual and Quarterly Progress Reports Extra-budget: Annual and Quarterly Workplans –Annual and Quarterly Requisitions »Annual and Quarterly Progress Reports 10

12. 2. …Practice Contd Implementation Government had primary responsibility MDAs LGs Auxiliary Private sector – in part, service delivery Civil society – mainly advocacy The media – principally watch-dog

13. 2. …Practice Contd 12

14. 2. …Practice Contd Capacity Institutional: Policies, laws, guidelines, organizations, etc. Human: Technical officers and experts Financial: Own and other funds 13

15. 2. …Practice Contd Risks and Mitigation Perceived Risks Failure to mobilize adequate funds (Low) Inability to build requisite capacity (Low) : –Implementation –M&E –Reporting Mitigation Measures Re-prioritization of critical tasks Issuance of performance contracts

16. 3. Challenges and Lessons Key Challenges Constrained resource envelope assumed full support of Development Partners; and Low planning/implementation capacity prioritization, prioritization, prioritization 15

17. 3. … Lessons Contd Effort Treasury Single Account system Introduced in Government MTEF Multi-sectoral, -institutional and -year Capacity-building and -development 16

18. 3. … Lessons Contd Lessons Funding: Pooled all funds into a single account Disbursed funds from the same account Implementation: budget basics enhanced implementation of MTEF Managed policy and planning at sector level Adopted single budget agency, responsible for co-ordination of NDP, as well 17

19. 18 4. Some Recommendations Lesotho NPoA Total cost estimated at US$ 200.1 million, over medium- term Cost was NOT resource-constrained

20. 4. … Recommendations Contd To the Kingdom in the Sky: Adopt one comprehensive National Plan Inclusive of APRM NPoA Use one macro-fiscal framework to constrain both National Plan and MTEF Open budgeting process to stakeholders Apply MTEF process to cover all sectors Execute one comprehensive budget 19

21. 5. Conclusion NPoA NDP Thematic Paper on Governance NDPMTEF Budget Framework Papers MTEFBudget Budget Call Circulars 20

22. 5. Conclusion Contd Effective implementation of a SMART NPoA can improve state of governance and accelerate socio-economic development in Lesotho: Apply same macro-fiscal framework to NSDP – inclusive of NPoA - and MTEF Undertake MTEF process to implement NSDP Execute a comprehensive budget 21

23. 22 Kea leboha