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ALIGNMENT OF BUDGET TO NATIONAL DEVELOPMENT PLAN (NDPII) – ISSUES FOR LOCAL GOVERNMENTS

This presentation outlines the importance of aligning budgets to the NDPII and highlights the issues faced by local governments in achieving this alignment. It also discusses the role of managing for development results and the certificate of compliance in ensuring alignment.

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ALIGNMENT OF BUDGET TO NATIONAL DEVELOPMENT PLAN (NDPII) – ISSUES FOR LOCAL GOVERNMENTS

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  1. ALIGNMENT OF BUDGET TO NATIONAL DEVELOPMENT PLAN (NDPII) – ISSUES FOR LOCAL GOVERNMENTS National Planning Authority

  2. Presentation outline • Introduction • NDPII and Middle Income Status • Alignment of budget instrument to NDPII and LGDPs • Alignment of the Budgets to the LGDP/SDP/NDPII • Managing for Development Results • The Certificate of Compliance

  3. Introduction • Uganda Vision 2040 aspirations are to become an upper middle income country by 2040 • It is envisaged Uganda will achieve a per capita income of USD 9,500 • The implication is improvement in the wellbeing of Ugandans commensurate to upper middle income standards

  4. Understanding Middle Income Attaining lower middle income status may not necessarily reflect improvements in the citizens’ welfare Nigeria, Ghana, Angola, Swaziland, and Zambia have attained middle income status with high poverty levels 46%, 24.2%, 36.6%, 63%, and 60.5% respectively.

  5. NDPII and Middle Income Status • The NDPII targets achievement of a lower middle income status with a per capita income of USD 1,033 by 2020 • Ugandans including children who are not working on average should each be earning at least USD 1033(UGX 3.5million) annually • Or USD 86(UGX 290,000) monthly

  6. NDPII and Middle Income … • The middle income goal for Uganda is broader than international definition of increasing per capita income • Looks at inclusive growth, anchored at household level and includes improving socio-economic indicators • i.e. adequate food, longer years of schooling, fewer children dying from preventable diseases, reduced incidence of malnutrition, reduced illiteracy, increased employment levels , etc.

  7. Uganda’s Milestones towards

  8. ALIGNMMENT OF LGDP TO NDPII • The LGs contribute to the achievement of the NDPII/Sector Objectives • LGs must then align their Plans and Budgets to the NDPII/SDPs objectives and priority/focus areas, including the NDPII interventions • The LGDPs should be aligned to the NDPII (content and timeframe) • The priorities of the LGDPs should be targeted towards attainment of Vision 2040 and objectives of the NDPII • This is possible through linking planning, budgeting, and implementation to Results (i.e. inputs, activities, outputs, outcomes and impacts) at all levels

  9. LACK OF ALIGNMMENT

  10. Alignment of the Budgets to the LGDP/SDP/NDPII • The issue of non-alignment of LG budgets and the National Budget is attributed to non-alignment of OBT outcomes/outputs to the NDPII outcomes/outputs • To address this, the NDPII Results and Reporting Frameworks were developed both for the MDAs and LGs (linked to the National Standard Indicator Framework and Budget Results Matrix for FY 2016/17) • Alignment can be realized by ensuring that the budgeting tool (OBT/PBB) domains (Outcomes and outputs and the corresponding indicators) are harmonized with the NDPII Results Framework

  11. Alignment of the Budgets to the LGDP/SDP/NDPII • The issue of non-alignment of LG Investment Profiles to priorities in the LGDP • The LG Investment profiles should contain projects that are consistent with the LGDP/SDP/NDPII priorities/focus areas • The alignment of budgets to Plans can be realized through ensuring that OBT domains (outcomes and outputs and the corresponding indicators) are harmonized with the NDPII Results Framework

  12. Alignment of the Budgets to the LGDP/SDP/NDPII……. • LGBFPs and AWPs/Budget must be drawn from the NDPII/Sector/LG objectives, priorities and areas of focus. • The LGIP should contain projects that are consistent with the LGDPs/SDPs/NDPII objectives, priorities and focus areas.

  13. Managing for Development Results • Involves five core components/stages: • Setting goals and agreeing on targets and strategies in the LGDPs • Allocating the available resources to activities in the LGBFPs/AWPs that will contribute to the achievement of the desired results; • Monitoring and evaluating whether the resources allocated are making the intended difference; • Reporting on performance to the stakeholders; and • Providing feeding back information into decision-making.

  14. The Certificate of Compliance • PFMA, 2015, Sections (6) and (7) require NPA to issue a certificate of compliance (CoC) for the Annual Budget of the previous FY • The CoC institutionalises the alignment of the annual budgets to the national planning frameworks • The assessment of compliance thus ascertains the consistence of the Annual Budget and NBFP/LGBFP with the NDP/LGDP

  15. Objective of Certificate of Compliance • To strengthen planning processes by ensuring complete consistency and alignment in the national planning framework right from setting of the strategic vision and focus to budgeting for the NDP and its implementation.

  16. Relationship between NDP, CFR, NBFP and AB as per PFM Act • The assessment of compliance of the AB is in line with section 13(6) and 13(7) of the PFM Act, 2015. Compliance shall be assessed based on consistence of the AB with the CFR; the NDP and NBFB

  17. 13 (6) 13 (6) NDP NBFP AB CFR 9 (3) 13 (6) 4 (1), 4(3) & 5(1) a (i) 9 (3) Relationship between NDP, CFR, NBFP and AB as per PFM Act

  18. Framework for Assessment of Annual • Budget Compliance • Assesses the consistency of the AB with the LGBFP/NBFP and the NDP*** • The framework applies to both central and local government levels. • i. LG Level Assessment (assess whether LG votes are focused on delivering NDPII and LGDP goals. • ii. LG Department Level Assessment (assesses whether Departments are primarily focused on delivering LGDP objectives and priorities); • For the CoC for FY2016/17, assessment will be carried out at LG level

  19. The CoC at LG Level • Areas of assessment at the Local Governments Level • Local Governments will be assessed to ensure there is: • An approved LG Development Pan • Consistency of LG Development Pan with the NDPII • Consistency of LG BFP with LG Development Pan • Consistency of Annual Budget with LGBFP, LG Development Plan/Sector Development Plan/NDPII • Consistency of release performance with Annual Budget • The implication for non-compliance is that the LG may be required to justify before parliament the reason why they should continue receiving funding

  20. The End

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