UGANDA PARLIAMENTARY BUDGET OFFICE (PBO)

1. PRESENTATION AT GLOBAL SEMINAR ON Open Government, Information and Budget Transparency for Parliamentary community. By Kintu Godfrey OTTAWA, CANADA 9TH TO 12TH JUNE 2014 UGANDA PARLIAMENTARY BUDGET OFFICE (PBO)

2. The Presentation is to: • Highlight the mandate, role and functions of the Parliamentary Budget Office in the National Budget process to the participants. • Outline the basic structure and functions of the Parliamentary Budget Office. • To highlight some aspects of effective legislative scrutiny of the budget and budget process and essential checks and balances for transparency and accountability. Introduction

3. The Budget Process in Uganda is regulated by a legal framework that includes the following laws among others:- • The Constitution of Uganda 1995, • Public Finance and Accountability Act 2003, • Budget Act 2001 and • Other laws and regulations which provide mandates for economic activities • such as the Local Government Act e.t.c. The Budget Regulating Laws

4. Arose out of a private members bill and found popular support in Parliament; However; Gov’t introduced the Public Finance Management Bill which seeks to consolidate a number of laws including the Budget Act This Act was aimed at making the Budget process more transparent, participatory and all inclusive; The Budget Act

5. It mandates early and continuous participation of parliament in the entire budgetary cycle and; Provides key entry points for all stakeholders to participate in the budget process. Bestows responsibilities and roles on stakeholders Sets Budget Timetable and dates of submissions as per the different clauses in the law. BUDGET ACT 2001

6. 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. The Budget Act, 2001

7. Analyzing and proposing alternatives in the preliminary estimates and the macroeconomic plan and programs as outlined by Government. This is done through submission of the recommendations by the speaker to the President. 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. Functions of the Budget Committee

8. Budget Analysis broadly refers to:- • Carrying out of a comprehensive and systematic assessment of the budget. • Budget Analysis therefore includes, • Examine the extent to which the revenue and expenditure targets meets the proclaimed national objectives. Budget Analysis

9. It was 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. The Parliamentary Budget Office (PBO)

10. The main function of the Parliamentary Budget Office is to provide Parliament and its Committees with independent, objective and timely analysis; to assess economic and budget proposals including analysis of the economic and fiscal programming Main Function of PBO

11. Providing budget-related information to all Committees; Submitting reports on economic forecasts, budget projections, and reduction of budget deficit; Identifying and recommending on Bills that increase or decrease revenue and the budget; Preparing analytic studies of specific subjects; and Generally advising Parliament and its Committees on the National Budget and the Economy. Specific Functions of PBO

12. Proposed new Functions as per the PFM BILL 2014 • Examine and advise Parliament on the certificate of gender and equity • Examine and advise Parliament on the treasury memoranda. • Examine and advise Parliament on requests for deviations from the Charter of fiscal responsibility • Examine and advise Parliamentary Committees on the economic and financial impact of a Bill • Annually provide a review and analysis of documents tabled in Parliament by the Executive

13. The main approach of analysis by PBO involves but not limited to:- • Provision of in depth economic and financial analysis and Social economic analysis of public policy. • Assessment of the regulatory impact of proposed and ongoing legislation. • Analysis of the financial implications of proposed legislation, this includes review of certificates of financial implications that accompany bills tabled in parliament. Approach to Analysis by PBO

14. Review of private cost implications of citizens in complying with legislation. • To assess the environmental and gender impacts of legislation and budgets and advise parliament and its committees accordingly. • And to provide advice to Parliament and its committee on the Economy in general and the Budget in particular. • Due to capacity limitations we are not yet in a position to execute this whole range of services but hope to cover them as the capacity of the office is enhanced. Approach to Analysis by PBO

15. The main approach in budget scrutiny involves: • Checking the Completeness of the Budget figures • Checking the accuracy and correctness of the budget figures. • Checking the consistence of expenditure with planned objectives and activities. • Checking releases of funds against budgetary allocations to various spending units. Analysis/Scrutiny of Budget

16. Checking resource outturns against the budgeted projections. • Checking on physical outputs of various forms of expenditure through physical inspection and public hearings by identifying potential for budgetary wastes and leakages. • Summarizing and interpreting submissions to make simpler reports to enable parliament and its committees to make informed decisions. Analysis/Scrutiny of Budget (Contd)

17. The MISSION of the Parliamentary Budget Office (PBO) is to create technical capacity within Parliament to interpret budget/economic data, and to provide the Parliament of Uganda with the objective, timely, non-partisan analysis needed for economic and budget decisions. VISIONof PBO is being the most reliable legislative policy decision support office. Mission and Vision of PBO

18. The functions of Budget Office fall under the Legislative services directorate and the department has two divisions namely Economics Analysis Fiscal Analysis For each of the schedules expressed in the organizational chart on slide 21, desk instructions have been developed to routinely equip and professionally guide the staff. Structure of PBO

19. Current Organizational Structure of Parliamentary Budget Office (PBO) DIRECTOR PBO Assistant Director Economic Analysis (1) Assistant Director Fiscal Analysis (1) Principal Economist Macro Sectoral (2) Principal Economist Expenditure & Tax (2) Principal Economist Financial Programming/ monitoring and accountability (2) Senior Economist (2) Senior Economist (2) Senior Economist (2) Economist (4) Economist (4) Economist (4)

20. This deals with the analysis of macroeconomic variables that are key to the economy ( Price movements, Balance of payments, Money Supply, Interest Rates, Exchange rates, the Public Debt, GDP, Budget Deficit). • Generally it deals with the analysis of the sectors of the Economy( Real, Financial and External sectors). economic Analysis Division

21. The Parliamentary Budget Office Commonly known as PBO has been a very welcome innovation and useful institution in the Uganda Parliament. • However a number of challenges in its operation still exist but we have served as a model. • High staff turnover • Inadequate capacity in specialized auditing • Inadequate financing to undertake topical studies • Lack of working equipment to facilitate networking with other Government agencies • Accusation of bias in our work as its construed as pro or against opposition members of Parliament • . CHALLENGES

22. Many Parliaments in Africa have come to learn from us, those who benefit from us make their own system even better We do seek support both soft and hardware towards improving our system and technical capacity in addressing the challenges mentioned above Appeal

23. PBO has enjoyed immense support from the Members of Parliament because of its outputs informed by reports. We thank you for this opportunity and invite you to The Parliamentary Budget office of Uganda THANK YOU CONCLUSION