UGANDA APRM PROCESS

1. UGANDA APRM PROCESS National Program of Action: Costing and Funding Harmonizing the United Republic of Tanzanian APRM - NPoA with the existing Development Strategies and MTEF Max Ochai September 26, 2012 Dar es Salaam

2. Presentation • Purpose: • To share Ugandan experience in costing and funding the APRM-NPoA. • To inform recommendations, measures, challenges and strategies for the Tanzanian case.

3. The Story • Critical path defined. • Required inputs determined. • Costs estimated and aggregated. • Costs integrated into MTEF ceilings. • Single budget executed. • Challenge: resource constraints. • Recommendations: get priorities right!

4. Outline • Introduction • Concepts • Practical Experience • Costing, Funding and Implementation • Key Challenges and Lessons • Effort • Some Recommendations • Conclusion

5. 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). • Integral part of CRR: • Key input into peer review process

6. 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

7. 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

8. 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!

9. 1. Introduction Cont’d • Development Strategies (DS): • Inclusive of NPoA, provides the roadmap for policy priorities • MTEF is where DS confronts budget realities • MTEF is, therefore, critical to effective implementation of DS

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

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

14. 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 costs upwards, for: • Inflation, by 10% p.a. • Contingency, by 10% p.a. • Step 6: Validated costs

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

16. 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. 2. …Experience Cont’d • NPoANDP • Thematic Paper on Governance • NDPMTEF • Sector Budget Framework Papers • MTEFBudget • Annual Budget Call Circulars

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

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

20. 2. …Experience Cont’d

21. 2. …Experience Cont’d

22. 2. …Experience Cont’d • Disbursements • National Budget: • Annual and Quarterly Workplans • Annual and Quarterly Releases • Annual and Quarterly Progress Reports • Extra-budget: • Annual and Quarterly Workplans • Annual and Quarterly Requisitions • Annual and Quarterly Progress Reports

23. 2. …Experience Cont’d • Institutional Mechanism • MFPED • APRM National Focal Point: • Political oversight • Funding • MDAs, LGs and Private Sector • Implementation • Monitoring implementation • Reporting progress

24. 2. …Experience Cont’d • APRM-NGC: • Monitoring, at national level • Reporting, at national level • NPA, as APRM National Secretariat: • Support services

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

26. 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 • Performance Contracting

27. 3. Challenges and Lessons • Key Challenges • Constrained resource envelope • assumed full support of Development Partners; and • Limited monitoring capacity • limited influence over resource allocation

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

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

32. 5. Conclusion • MTEF process is key to effective implementation of NPoA • MTEF must cover whole Government • Apply same macro-fiscal framework for MTEF and Plan • Cost required inputs, for critical activities. • Execute a comprehensive budget

33. END THANK YOU