Csbag pre-budget dialogue-1 presentation

BUDGET STRATEGYFINANCIAL YEAR 2015/16

PRESENTATION ON THE BY

DIRECTOR BUDGET

MINISTRY OF FINANCE, PLANNING AND ECONOMIC DEVELOPMENT

AT

THE CIVIL SOCIETY PRE-BUDGET PUBLIC DIALOGUE

15H APRIL, 2015

Outline Introduction;

Framework for the Budget Strategy for FY

2015/16;

Brief Highlight of the Budget Strategy for the FY

2015/16;

Civil Society Concerns;

ConclusionPre Budget Dialogue for FY 2015/16 2

FRAMEWORK FOR FY 2015/16 BUDGET STRATEGY

Pre Budget Dialogue for FY 2015/16 3

Issues emerging out of Implementation of the first National

Development Plan (NP1);

Facilitating implementation of the Second NDP-2 and NRM

Manifesto;

Taking into account the Rebasing of the Economy;

Findings for the National Population and Housing Census;

2016 Elections Roadmap

FRAMEWORK FOR FY 2015/16 BUDGET STRATEGY

Proposed theme for the financial Year

2015/16 Budget is ‘Maintaining

Infrastructure Investment and Promoting

Excellence in Public Service Provision’. .


Table 1: Key Macroeconomic Performance and Assumptions for FY 2013/14-FY 2016/17


2013/14 Outturn

2014/15 Proj.

2015/16 Proj.

Real GDP Growth 4.5% 5.3% 5.5% Average Annual Headline Inflation 6.7% 3.1% 5.5% Fiscal Deficit (% of GDP), excl. grants 5.1% 8.5% 7.9% Tax Revenue (% of GDP) 11.4 12.7% 13.2% Reserves Cover (months of imports) 4.8 3.9 3.9 Trade Deficit (% of GDP), goods and services 11.3% 10.7% 11.1%

SECTOR PRIORITIES FOR FY 2015/16

• Facilitating Private Sector Enterprise for

increased Investment, Employment and

Economic Growth;

• Effective delivery of Infrastructure Development

and Maintenance;

• Commercializing Production and Productivity in

Primary Growth Sectors;Pre Budget Dialogue for FY 2015/16 6

SECTOR PRIORITIES FOR FY 2015/16

• Enhancing Capacity for Increased Domestic

Revenue Mobilization;

• Increasing Social Service Delivery; and

• Enhancing Efficiency in Government

Management


Facilitating Private Sector Enterprise for Increased Investment, Employment and Economic Growth

• Sound macroeconomic management,

• promotion of direct and portfolio foreign direct

investment,

• ensuring debt sustainability and maintaining of

sufficient level of foreign reserves at least five

months import cover to adequately buffer

external shocks.Pre Budget Dialogue for FY 2015/16 8


• Support developing technical expertise and

entrepreneurship,

• financial deepening through pensions and capital market

development,

• increasing availability of long term capital for private

sector financing, and promoting the development of

innovative financial products for the private sector.



• strengthening the institutional framework for business

and land registration, and investment promotion,

• enhance technical and entrepreneurial know-how

through small business incubation, and access venture

capital, promotion of financial partnerships for long-

term viable projects,Pre Budget Dialogue for FY 2015/16 10


• reduce the burden of meeting regulatory requirements

for starting a business including expedition of business

licensing reform and enhancing efficiency of the judiciary

to reduce commercial case backlog by introducing new

technology, making procedures faster, including

instating smalls claims procedures.,Pre Budget Dialogue for FY 2015/16 11

Enhancing Capacity for increased Domestic Revenue Mobilization

• expansion of the tax base, reforming the structure of

taxation and improve efficiency in tax collection and

compliance.

• Completion of the National Identification Project,

• linking Business Registration databases to Uganda

Revenue Authority and linking Local Governments to

trade registration to Uganda Revenue Authority.


Enhancing Capacity for increased Domestic Revenue Mobilization

• Further review and revision of NTR rates

• Ensuring that all NTR is appropriated by

Parliament before utilization and collected

through the Consolidated Fund


Commercializing Production through Productivity Enhancement and Value Addition

• Agriculture:

– implementation of the Single Spine Agricultural

Extension Scheme,

– Continued provision of improved agricultural

technologies and inputs;

– Supporting agricultural research and development,



• Agriculture:

– Promotion of investment in agricultural infrastructure

including and agricultural equipment

– Agricultural financing,

– processing and value addition for agricultural

produce; and Development of markets and other

marketing arrangements.



• Tourism Development:

– Tourism promotion,

– training,

– regulation and maintenance of the sector activities at

internationally acceptable standards and

development of strategic tourism infrastructure in

partnership with the Private Sector.Pre Budget Dialogue for FY 2015/16 16

Accelerating Infrastructure Development and Maintenance

Road Transport

Accelerating the construction and completion of on-

going road projects;

maintenance of the national, district, urban,

community access road networks and numerous

bridges across the country. Pre Budget Dialogue for FY 2015/16 17


• Water Transport:

– Continue to improve the regional and inland water

system mainly through procurement of ferry services;

– Improving the safety and quality of the water transport

system in partnership with the private sector.Pre Budget Dialogue for FY 2015/16 18


• Air Transport:

– facilitate the on-going interventions for improving the

quality of air transport through maintenance and

operations at Entebbe International Airport and other

Air transport facilities across the country; and

– Fast tracking the development of an airport at

Kabaale (Hoima).Pre Budget Dialogue for FY 2015/16 19


• Railway Transport;

–Fast-tracking the process of

developing the Standard Gauge

Railway network.



Electricity

Accelerate the construction of Karuma Hydropower

Project (600MW); Isimba hydro power project

(183MW), other mini-hydro power projects;

Continued construction of transmission lines under

the Rural Electrification Programme.Pre Budget Dialogue for FY 2015/16 21


Oil and Gas Sub-Sector

– Continued exploration of oil and other valuable

minerals,

– development of the Oil Refinery and the Malaba-

Kampala, Eldoret-Kampala and Kampala-Kigali

petroleum products pipelines,

– construction of Nakasongola Fuel reserves, among

others. Pre Budget Dialogue for FY 2015/16 22


Science, Technology and Innovation for

Industrialisation and Private Sector Competitiveness.

promotion of e-Government

finalization of the legal and policy framework with emphasis on

the National ICT Policy and other ICT sector policies as detailed

out in the National Budget Framework Paper


Enhancing Public Social Service Delivery

Education and skills development

– Increase facilitation of the UPE, USE and UPOLET

programmes by increasing funding to the Capitation

and School Facilities Grants;

– Continue with the procurement and distribution of

instruction materials and teaching aids;

– Improving the quality and equipping of education

infrastructure Pre Budget Dialogue for FY 2015/16 24



– Enhancing vocational and skills development by

strengthening Skilling Uganda Project,

– supporting digital and science and staffing of the

newly constructed technical schools;

– Strengthening the Student Loan Scheme to increase

access to tertiary education with emphasis on the

critical skills;Pre Budget Dialogue for FY 2015/16 25



– Improving staff welfare through salary enhancement

to reach the 50% salary enhancement agreed

between Government and UNATU;

– Further support to the Teachers SACCO.

– Strengthen the monitoring and supervision system at

school/institutional level and regular cleaning of the

payroll. Pre Budget Dialogue for FY 2015/16 26


Health

– Construction, expansion and further rehabilitation,

equipping and staffing of the national, referral,

general and lower level health facilities.

– Enhancement of health awareness campaigns

including the anti-malarial programme;

– Address the staffing gaps through recruitment of

additional health workers with emphasis on the

critical cadres;Pre Budget Dialogue for FY 2015/16 27


Health

– Improving staff welfare through further provision of

facilities such as staff houses, electricity, water and

sanitation and payment of hard to reach among other

allowances.

– Continued procurement and distribution of essential

health kits such as mama kits, specialized equipment

and improve the management of the referral and

ambulance services;Pre Budget Dialogue for FY 2015/16 28

Sector Priorities for FY 2013/14

Health

– Strengthening the reproductive health activities,

mentoring of long term family planning methods and

conducting independent maternal death audits

countrywide;

– Improve timeliness, comprehensiveness and composition

in the supply and delivery of essential of drugs and

medicines;

– as well as monitoring and supervision at service delivery

level.Pre Budget Dialogue for FY 2015/16 29


Water and Sanitation

Continue to rehabilitate and expand both urban and

rural water and sanitation facilities;

Strengthening coordination and implementation of

sanitation programmes, expansion of hygiene

education programmes;

development and rehabilitation of various Gravity

Flow Schemes;Pre Budget Dialogue for FY 2015/16 30


Water and Sanitation

completing the on-going construction and

rehabilitation of dams

environmental protection awareness

campaigns such as tree planting, gazetting and

protection of critical ecosystems



Gender and Youth Empowerment and Social

Protection

Strengthen the on-going interventions targeted at the

Youths, Women, Elderly, Disabled and other

vulnerable groups. These include the Youth Livelihood

Programme (YLP), Youth Venture Capital Fund, the

Social Assistance Grant for Empowerment (SAGE).


Improving Public Sector Management and Overall Service Delivery

• Improving coordination in implementation

Government programmes/projects,;

• Enhanced monitoring at facility levels and

enforcement of performance standards;

• Promotion of e-Government and Information

Technology in dissemination of information of

the budget informationPre Budget Dialogue for FY 2015/16 33


• Elimination of Salary, Pensions, Gratuity and all

other forms of arrears;

• Cause the investigation of all ineligible

expenditure;

• Strengthen Public Investment Management

through project preparation, appraisal,

monitoring and evaluation;Pre Budget Dialogue for FY 2015/16 34


• Address human resource gaps through

recruitment and filling of critical posts especially

in local governments,

• Continuous payroll cleaning and management

• Full decentralization of Pension and Gratuity;

• Review the procurement rules and enhancement

of contract management; Pre Budget Dialogue for FY 2015/16 35


• Ensuring timeliness, increase comprehensiveness

and composition in the supply of drugs,

medicines and instructional materials at

education and health facilities for enhanced

service delivery.


Addressing CSBAG Concerns

• Macroeconomic Management

– Sound Macroeconomic stability remains the cornerstone for

Uganda’s economic growth and development.

– That is why, the budget strategy for the FY 2015/16

emphasizes;• Achieve and maintain a rate of real economic growth of at least 6% per

annum;• Maintain annual inflation within single digits;• Maintain foreign exchange reserves cover of at least the equivalent of

4.5 months of imports of goods and services;• Maintain a real exchange rate compatible with a competitive external

sector.Pre Budget Dialogue for FY 2015/16 37


• Sectoral Resource Allocation

– Allocation of resources is not a matter of percentages

but is driven by the major expenditure drivers derived

from the broad national priorities of the NDP;

– Sectoral resource allocations must be within the

overall macroeconomic revenue and expenditure

framework as well as the Budget Strategy agreed with

all stakeholders.Pre Budget Dialogue for FY 2015/16 38



– Reductions in sectoral allocation can be attributed to

a number of factors ranging from other emerging

expenditure pressures such as the need to finance

the election roadmap, completion of some of the

previously ongoing projects and inter-sectoral

reallocations to finance other more pressing

priorities.Pre Budget Dialogue for FY 2015/16 39



– Sectors and Spending Agencies are expected to

ensure efficiency in allocation and utilization of the

available resources with emphasis on the critical

service delivery areas;

– Thus, the proposals by CSBAG to increase resource

allocations to various sectors should be put within

the context of the available resources.Pre Budget Dialogue for FY 2015/16 40





• Domestic Revenue Performance.

– Government welcomes proposals for domestic

revenue mobilisation.

– The proposed interventions for enhancement of

domestic revenue mobilization are well articulated in

the budget strategy for the FY 2015/16;

– Specific tax and non-tax revenue measures for the FY

2015/16 have also been presented in Parliament.Pre Budget Dialogue for FY 2015/16 42


• Appointment of Accounting Officers

– As one of the measures to addressing the challenge of

financial mismanagement, the names of officers proposed

for appointment as Accounting Officers, have been

forwarded to the Auditor General for vetting.

– Thus, effective FY 2015/16, appointment of Accounting

Officers will be based on recommendations of the Auditor

General;


Public Expenditure Management

• The new Public Finance Management Act 2015 will

greatly strengthen the entire PEM system including

streamlining the process of accessing supplementary

funding, strengthen accountability in the use of public

resources and also strengthen the oversight role of the

legislature in the entire budgeting process.

• Government appreciates the support of the CSBAG

during the process of formulating and enactment this

Law in Parliament.Pre Budget Dialogue for FY 2015/16 44

Public Expenditure Management (PEM)

• The MoFPED is also working closely with other

stakeholders to implement several other PEF reforms

aimed at improving the budgeting process. These

include full implementation of performance based

budgeting, budget transparency initiatives

• The National Budget Framework Paper recently laid in

Parliament also details out several other measures for

strengthening Public Expenditure Management. Pre Budget Dialogue for FY 2015/16 45

Corruption and Theft of Public Resources

• The Budget Strategy for the FY 2014/15 clearly acknowledged corruption and abuse of public resources as one of the challenges to service delivery;

• Government will continue to strengthen financial management systems and the various anti-corruption agencies to tackle this problem.

• However, fighting corruption is more complex than merely talking about it.

• It requires concerted efforts by all stakeholders including the civil society;

• We shall continue to implement transparency measures including the publication of resources released to MDAs.Pre Budget Dialogue for FY 2015/16 46

Gender and Equity Budgeting

• This remains one of the weak areas of the budget.

• The Social Development Sector needs to develop clear

outputs, guidelines and performance indicators to

ensure proper engendering of the budget.

• We also need the support of the Civil Society on how

best sector budgets can address gender gaps in

service delivery.


CONCLUSION

• Government appreciates and considers the Civil Society

as a key stakeholder in public service delivery;

• The budget for the FY 2015/16 presented in Parliament

took into account the input of all stakeholders including

CSBAG;

• It is however imperative that CSBAG enhances its

involvement in the implementation of the budget to

monitor the utilization of resources and delivery of

services.Pre Budget Dialogue for FY 2015/16 48

END

THANK YOU FOR LISTENING


Documents

Csbag pre-budget dialogue-1 presentation