LINKING THE BUDGET TO THE NATIONAL DEVELOPMENT PLAN

1. LINKING THE BUDGET TO THE NATIONAL DEVELOPMENT PLAN MINISTRY OF FINANCE, PLANNING & ECONOMIC DEVELOPMENT AND NATIONAL PLANNING AUTHORITY

2. Presentation Outline • Introduction • Priorities for 2014/15 • Linkage between NDP and the Budget • NDP II Process • Conclusion

3. Introduction Objectives of the Presentation • Guide Votes on alignment of their Budgets to the NDP priorities • To demonstrate the allocation of the Budget to the NDP priority areas thus far • To communicate the NDP II preparation process

4. Introduction • Government approved the comprehensive National Development Planning Framework (CNDPF) policy in 2007; • Provides a clear perspective vision and long-term plans to articulate the country’s strategic development objectives and priorities against which medium and short term plans are anchored.

5. Introduction Elements of the CNDPF • It is comprised of five principal elements • 30 Year National Vision. • 10 Year National Development Plan • 5 Year National Development Plans • Sector Investment Plans • Local Government Development Plans (DDP & MDPs) • Annual Plans • Annual Budgets

6. Introduction Uganda Vision 2040 • In April 2013 Government launched Uganda Vision 2040 whose aspirations are to transform Uganda from a predominantly low income country to upper middle income country within 30 years with per capita income of USD 9500. • Uganda Vision 2040 is to be achieved through implementation of the NDPs which are financed mainly through the National budget.

7. Introduction National Development Plan FY 2010/11-14/15 • The NDP is the overarching Government plan which stipulates the medium term strategic direction, development priorities and implementation strategies; • The theme of the NDP is Growth, Employment and Socio-economic Transformation. • Sectors are responsible for developing policies and plans, which must be aligned with the NDP; • The LGDPs are majorly linked to the NDP through the SIPs

8. The Key NDP Priorities • Accelerating infrastructure development (energy, ICT, transport). • Increasing agricultural production and productivity • Improve on community’s social well-being and human development ( Education and Health). • Water for Production • Governance and accountability Note: Other priorities may emerge in the course of implementation of the National Plan e.g. disasters;

9. Priority cont..... 1. Accelerating infrastructure development LGs will focus on: • Increase investment in value addition; • Rehabilitation and routine maintenance of roads and bridges • Increasing Agric. Production & Productivity: LGs should focus on the following; • Use of improved seeds, fertilisers and provision of extension services • Promotion of the 10 key commodities • Small scale and affordable technologies such as walking tractors • Agro zoning

10. Priority cont..... 3. Improve on community’s social well-being & Human Development LGs should focus on; • Improving provision of social services delivery especially in education and health 4. Water for production LG should focus on: • Rain water harvesting for production; • Small scale irrigation technology

11. Priority cont..... 5. Governance & Accountability LGs should focus on: • The rule of law and accountability • Monitoring and supervision • Effective and efficient use of limited resources • Effective implementation of Government programme

12. Why harmonise the Budget and the NDP • Priorities have to be financed; • Aligning planning and budgeting cycle of Government; • Rationalisation of budgeting and planning instruments; • Participation in planning and budgeting processes

13. Linkage between the NDP and the Budget • The budget is the main tool by which Government allocates resources to implement its plans and address emerging policy priorities; • The Budget Framework papers and MTEF translates policies into implementable plans; • The framework for linking policies and plans to the budget is as demonstrated below:

14. Linkage between the NDP and the Budget Policy Strategic Operational MTEF & NBFP NDP Annual Budget Overall Sector Investment Plan Plans Sector BFP Ministerial Policy Statements Sector

15. Linking Budget to NDP Cont...... 1. Medium Term Exp. Framework (MTEF) • The MTEF is a framework linking policies and plans to the budget; • MTEF rationalizes plan with finances in an integrated manner; • Reduces the imbalance between what is affordable, available and expenditure requirement.

16. Linking Budget to NDP Cont...... 2. Medium Fiscal Framework (MTFF)-Res.Env • Sets fiscal policy and macroeconomic targets; • It sets out the hard budget constraint; 3. The National Budget Framework Paper (BFP); • The Government Budget strategy document linking Government’s overall policies and the budget. 4. The Budget: • An estimate of Government revenue and expenditure prepared annually.

17. Challenges of Resource Allocation • Limited resource envelope vis-à-vis increasing demand for resources; • Financing productive sectors vs. other enabling sectors; • Poor prioritization of resource allocation at sector level; • Allocative inefficiency;

18. Mapping Budget to the NDP • The excel sheet below shows budget provision against the NDP projections (FY 2010/11-FY 2013/14): • Mapping National Budget - NDP.xlsx

19. THE NDP II PREPARATION PROCESS • The current NDP (NDP I) is coming to an end (June 2015) • NDP II will set the agenda for the next five years • NDP II must be in place by September 2014 to inform the budget process for 2015/16 and also other stakeholders plans like: CSOs, private sector and Development Partners

20. What is likely to inform NDP II • The Vision 2040: • Vision 2040 highlights the key opportunities and fundamentals for government Investments; • The Opportunities and fundamentals e.g. Tourism infrastructure and Minerals Infrastructure • NDPI Mid Term Review (MTR) • Emerging issues: poor implementation; weak alignment of NDP to budget; underfunding NDP core projects; inadequate human resources • On-going Regional and International discussions • EAC heads of state discussions, MDGs, etc

21. Approach to the production of NDPII • Alignment of implementation plans and Budgets with NDPII • Sector Investment Plans and Higher LG Development Plans • Budget • Other stakeholder plans (Development Partners, CSOs, Private sector)

22. PLANNING FRAMEWORK VISION 2040 NATIONAL DVELOPMENT PLANS (NDPs) SECTOR Dev’t PLANS SETOR Dev’t PLANS SECTOR Dev’t PLANS SECTOR Dev’t PLANS DDPs/ MDPs

23. Clearly aligned objectives and indicator Vision Priorities NDP Objectives & Indicators Sector Objectives & Indicators DDP/MDP Objectives & Indicators

24. Approach cont…. • Implementation Modalities • Improve capacity to implement(Human resource and institutional capacities) • Address challenges of Implementation (Procurement processes, resource mobilisation among others.) • A multi-sectoral core team has been constituted • National development issues paper has been developed • National consultations are planned

25. The NDP II proposals will cover: • Development of a detailed macro-economic strategy; • the SIP/SDPs and LGDPs reviewed and aligned to NDPII priorities; • Making sure cross cutting Issues are well addressed (e.g. population, social protection, human rights, gender, culture and national values, Environment etc.) ; • Instruments of monitoring and evaluation are appropriately developed; • Addressing issues of physical planning.

26. Timelines

27. Conclusion • National BFP represents the strategic link between Government’s overall policies (NDP) and the annual budget; • Resource allocation should be based on NDP priorities and on emerging challenges; • The budget for FY 2014/15 should be in line with above priorities. • Infrastructure development is expected to remain a key priority under NDP II;

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