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MINISTRY OF FINANCE, PLANNING AND ECONOMIC DEVELOPMENT

August 2015

Budget Process

Consolidating intergovernmental transfers to local government

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Structure of the presentation

1. Key changes to the budget process2. Sep-Dec: preparing the LG BFP3. Jan-Apr: preparing LG budget estimates4. May-Jun: finalizing LG budget estimates and performance contract

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Key changes to the budget process

• Key dates revised to comply with PFM Act (2015):• LG BFP discussed by Council by 31 Dec• LG budget estimates submitted to Council by 31 Mar• LG budget estimates approved by Council by 31 May • Performance contacts signed before 30 Jun

• Performance contracts will only be signed if LG complies with sector budget requirements. Central Government to comment on:• LG BFP by 1 Feb to feed into Budget Estimates• draft Performance Contract by 15 Apr to feed into final Estimates

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Budget Calendar (Sep-Dec)Budget Activities (Local and Central Government) By…

Regional Consultative Budget Workshops with local governments, discussing Draft Grant and Budget Requirements and LG Planning and Budgeting Guidelines

20 Aug

Local Government negotiations with sectors to agree grant conditions and allocation formulae 10 SepMOFPED issues the first Budget Call Circular, accompanied by the: IPFs, Grant and Budget Requirements 30 Sep

Budget Desk prepares the first Local Government Budget Call Circular and shares with HoDs and LLGs. This includes: allocations to LLGs, Departments

5 Oct

Departments and LLGs prepare inputs for the LG BFP and draft LG DPs and submit to Budget Desk, including Estimates, Workplan

20 Oct

LG Planning and Budget Conference to discuss LLG, Department Workplans, investment decisions 31 Oct

Budget Desk Compiles LG BFP and LG DPs before review by the Technical Planning and Executive Committee 10 NovApproval by LG Executive Committee and Submission of the LG BFP to the MoFPED and Council 15 NovNational Consultative Budget Conference 30 NovDiscussion of the draft LG BFP by the Standing Committees of Council 31 DecNational BFP to Parliament Incorporating grant allocations in MTEF, Grant and Budget Information 31 Dec

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Budget Calendar (Jan-Apr)

Budget Activities By…

Review of LGBFPs by central government to assess compliance with overall and sector budget requirements. 1 Feb

National BFP Approved by Parliament (commitment to allocation formulae + IPFs) 1 Feb

MoFPED Issues the Second Budget Call Circular, incorporating IPFs and feedback on compliance with budget requirements

20 Feb

Budget Desk prepares Second LG Budget Call Circular (revised IPFs, instructions to address feedback) 28 Feb

Draft Departmental Budget Estimates and Annual Work Plans submitted to Budget Desk 10 MarBudget Desk Compiles Draft Budget Estimates and Annual Work plans 15 Mar

Review of the Budget Estimates and Annual Work plans by the Technical Planning Committee and the LG Executive Committee

25 Mar

Laying of the Budget before LG Council and Submission of draft Performance Contract to MOFPED

(Submission includes a response as to how adjustments have been made to ensure budget requirements have been met.)

1 Apr

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Budget Calendar (May-Jun)

Budget Activities By….

MoFPED Lays the National Budget before Parliament 1 Apr

Central Government reviews draft performance contracts and budgets to assess compliance with sector budget requirements.

15 Apr

Approval of the Budget by Council 31 May

Approval of the National Budget by Parliament 31 May

Presentation of the National Budget Speech in Parliament 15 Jun

Budget Execution Circular issued by MOFPED 30 Jun

Submission of Final LG Performance Contract to MOFPED 30 Jun

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Thank You

Any Questions?