1. 1 UGANDA APRM PROCESS National APRM Workshop on “Harmonizing the Mauritius’ APRM-NPoA with the existing Development Strategies and MTEF”: Mauritius; April 23 – 24, 2012 Max Ochai April 24, 2012 National Program of Action: Costing and Funding

2. Presentation Purpose: To share Ugandan experience in linking APRM-NPoA with MTEF and National Budget. To stimulate debate and generate recommendations to assist Mauritius in harmonizing its APRM-NPoA with ensuing development plan, MTEF and National Budget. 2

3. Outline Introduction Concepts Practical Experience Ugandan Key Challenges and Lessons Effort Some Recommendations Conclusion 3

4. 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 ). Constituent part of CRR: Key input into peer review process 4

5. 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 5

6. 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

7. 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!

8. 1. Introduction Cont’d Budget Annual plan Statement of expenditure and its funding According to IMF (2001) GFS Manual: Revenues –Tax –Non-tax –Grants Expenditure Financing –Loans

9. 1. Introduction Cont’d National Development Strategies (DS): Comprehensive Consistent Systematic Priorities DS I nclusive of NPoA, provides the roadmap for policy priorities

10. 1. Introduction Cont’d Dove-tail Planning process Evaluation Macro-economic analysis –Situation analysis »Priorities – point where DS confronts Budget –Setting resource ceilings Estimation of resource envelope Public expenditure review Budgeting process

11. 2. Uganda: Practical Experience NPoA: Methodology Desk research – 1 unit Expert panel interviews – 200 units Focus group discussions – 96 units National sample survey – 1,588 HHs Country-wide consultations Public hearings – 4 regions Submission of memoranda by interest groups – 4 regions 11

12. 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

13. 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

14. 2. Cost of... Cont’d Costing: Methodology Participatory approach Stakeholders –Head of Public Service –MDAs –LGs –NDP Preparation Core Technical Team –APRM-NC 14

15. 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 the derived costs for: »Inflation, by 10% p.a. »Contingency, by 10% p.a. Step 6: Validated costs 15

16. 16 2. …Experience Cont’d Total cost estimated at US$ 4.9 billion, 2008/09 to 2010/11 FYs NPoA was NOT resource-constrained

17. 2. Cost of... Cont’d Costing: Basic References BFP, 2008/09 – 2010/11 FYs Inputs PPDA Budget Guidelines, 2008/09 FY Unit costs www.michaelpageinternational.com Consultancy rates 17

18. 2. …Experience Cont’d NPoA NDP Thematic Paper on GovernancePaper NDPMTEF Sector Budget Framework Papers MTEFBudget Annual Budget Call Circulars 18

19. 2. …Experience Cont’d Sources of Funds Domestic: National Treasury MDAs - own receipts LGs - own collections External: Development Partners –Multi-lateral –Bilateral 19

20. 2. …Experience Cont’d Uses of Funds Budgetary: Subjected NPoA to national, sectoral and sub-national priorities Provided for implementation of NPoA in National Budget, within MTEF Extra-budgetary: Discretionary 20

21. 2. …Experience Cont’d Implementation Government had primary responsibility MDAs LGs Private sector and CSOs played role of: Service delivery Advocacy Watch-dog

22. 2. …Experience Cont’d 22

23. 2. …Experience Cont’d 23

24. 2. …Experience Cont’d 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 24

25. 2. …Experience Cont’d Institutional Mechanism MFPED, as APRM National Focal Point: Political oversight APRM-NGC: Monitoring Reporting NPA, as APRM National Secretariat: Support services 25

26. 2. …Experience Cont’d Capacity Institutional: Equipment, systems and networks Human: Technical officers and experts Financial: Own and other funds 26

27. 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 Contract assignments

28. 3. Challenges and Lessons Key Challenges Constrained resource envelope assumed full support of Development Partners; and Limited short-term planning capacity limited influence over resource allocation 28

29. 3. … Lessons Cont’d Effort Single account system Bank of Uganda MTEF Multi-sectoral Institutional-based Capacity-building and development 29

30. 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

31. 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

32. 4. Some Recommendations 1.Same macro-framework for MTEF and Plan 2.MTEF process should cover all sectors 3.Budget comprehensiveness is key 4.Opening up the budget-making process to stakeholders as part of the development of the MTEF 5.Improved costing and target-setting to facilitate Parliamentary engagement in debate about the budget and the Plan 32

33. 5. Conclusion NPoA can change state of governance and socio-economic development MTEF process is the key to effective implementation of NPoA MTEF must cover whole Government Apply same macro-fiscal framework for MTEF and Plan Execute a comprehensive budget 33

34. 34 END THANK YOU