LINKING THE BUDGET TO THE
NATIONAL DEVELOPMENT PLAN
MINISTRY OF FINANCE, PLANNING &
ECONOMIC DEVELOPMENT
AND
NATIONAL PLANNING AUTHORITY
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Presentation Outline
• Introduction
• Priorities for 2014/15
• Linkage between NDP and the Budget
• NDP II Process
• Conclusion
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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
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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.
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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
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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.
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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
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The Key NDP Priorities
1. Accelerating infrastructure development (energy,
ICT, transport).
2. Increasing agricultural production and productivity
3. Improve on community’s social well-being and
human development ( Education and Health).
4. Water for Production
5. Governance and accountability
Note: Other priorities may emerge in the course of
implementation of the National Plan e.g. disasters;
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Priority cont.....
1. Accelerating infrastructure development
LGs will focus on:
• Increase investment in value addition;
• Rehabilitation and routine maintenance of roads and bridges
2. 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
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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
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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
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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
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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:
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Linkage between the NDP and the
Budget
Strategic
Operational
NDP
MTEF &
NBFP
Annual
Budget
Sector
Investment Plan
Plans
Sector
BFP
Ministerial
Policy
Statements
Overall
Policy
Sector
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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.
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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.
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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;
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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
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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
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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
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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)
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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
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Clearly aligned objectives and indicator
Vision
Priorities
NDP Objectives &
Indicators
Sector Objectives &
Indicators
DDP/MDP Objectives & Indicators
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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
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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.
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Timelines
Tasks
2013
Jul
Aug
Sep
Oct
2014
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
2015
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Preliminary Activities
Macro-economic strategy
Sector Development Plans
Local Government
Development Plans
Cross cutting issues
Implementation, Monitoring
and Evaluation
Spatial Reflection of NDP2
Drafting and Approval Process
for NDPII
NDP2 Dissemination
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Mar
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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THANK YOU FOR
LISTENING
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