Linking Planning & Budgeting through MfDR MfDR Experience in Maldives

Presented by: Aslam Mohamed Shakir

State Minister, Department of National Planning,

Ministry of Finance and Treasury, Maldives

(1) History(2) MfDR Processes(3) Result-based Planning(4) Result-based Budgeting(5) Result-based Monitoring and Evaluation(6) Peformance Management(7) Capacity Development(8) Stakeholders(9) Challenges(10) Way forward

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MfDR experience in MaldivesBy: Aslam Mohamed Shakir

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MfDR framework is very new to Maldives

Started being applied in March 2010 through the need for formulation of Monitoring and Evaluation framework of the national development plan : The Strategic Action Plan (SAP) 2009-2013.

Hence, work has started to link Planning and Monitoring & Evaluation.

Budgeting Process in 2010 attempted to incorporate MfDR principles: Formation of program-based budgets Linking planning to budget through linking SAP to 2011 budget

Core Group and Steering Committee formed for MfDR. Capacity Development of Core

Group, Steering Committee and Department of National Development has been started.


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Currently, Maldives is focusing on the areas of result-based

(1) Planning(2) Budgeting(3) M&E

However need to address(1) Capacity development(2) Performance Management


(3) Result-based Planning(3) Result-based Planning Development Plan of Maldives Strategic Action Plan 2009-2013 (SAP) Election manifesto-based operational plan of current

government 5 pledge areas (transport, living costs, housing, health &

narcotics) and other major areas (good governance, social justice, economic development, other areas)

Constraints1) SAP formulated without

Budget Links M&E Framework

2) 5-yr medium-term plan. Further need for Long-term national vision (> 5yrs) Short-term sector/regional/local level plans (1-3 yrs)

3) Capacity limitation (Department, National Planning Council Secretariat)

5 pledges of SAP

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Historically, Planning and Budgeting process had a disconnect with the processes being mandates of

different organizations (Ministry of Finance & Ministry of Planning)

Now, Planning Department now organized under Ministry of Finance

Hence, greater potential for synchronizing planning and budgeting

In September 2010, HEP announced the GoM’s vision to move towards program budgets and work

collaboratively to achieve program goals

So, 2012 budgets would be further detailed as program budgets

Constraints:1) Budgets not prepared for local Governments (to be formed in Feb 2010)2) Capacity of trained personnel for the process3) Resource/funding limitations leading to prioritization and no budget allocations for critical developmental areas

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Traditionally: mid-term M&E is 5 year review of development plans

Monitoring is carried out in a fragmented manner. By: National Planning Council Office for Projects and Programmes (OPP) Sector Ministries Donor agencies Independent entities

Constraints:

1) Communication and Co-operation between government organizations

2) Lack of comprehensive, holistic M&E system in place

3) Limitations of data collection and statistics

4) Lack of relevant information systems to back the M&E framework

5) Technical capacity centrally and especially provincial level

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Civil Service employee performance (at national, sector, local level) needs to be accounted and measured.

Ministers’ need to be held accountable to ministerial results

This would ensure accountability of the public service management at national and provincial levels.

The national-level programs, to be overseen by President’s Office, endeavor to bring together multi-ministries to gain

joint accountabilities and hence joint results.

Constraints: Lack of system in place to link responsibilities/mandates to results Need for greater co-orperation in achieving national level results Many prerequisites:

1) Legal framework to hold ministers’ accountable to results

2) Change in mandate of ministries with focus on results

3) Greater clarity of roles at national, sector and local levels

4) Limited capacity to undertake the process

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Capacity Development in the context of change management has been carried out for of Core Group, Steering Committee and DNP.

This process needs to address a mind change of the whole government sector.

All of MfDR processes highlight the need for capacity development of human resources at national as well as regional level.

Especially, with the formation of a decentralized governing system with councils elected for the provinces, capacity development

becomes vital.

Constraints: Financial resources Lack of capacity audit and business process map for the whole government (national and provincial level) Need for change of mindset across the civil service

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Steering Committee

Co-ordination – Department of National Planning

Includes representation from President’s Office (PO), DNP, MoFT, UNDP

Spearheaded by Minister of Finance

Committee guides the Core Group on MfDR process and policy decisions Core Group

Includes Focal Points from all Stakeholder ministries (identified in the SAP)

Takes relevant technical decisions

These are the MfDR co-ordinators who will ensure that MfDR process is carried out

within respective ministries

Guided by (1) Consultants & (2) Steering Committee


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Vibrant political arena

Establishing a good governance structure

Institutional and legislatory constraints (of a new democratic government)

Need for citizens to meet basic necessities/requirements (health care, affordable cost of

living, etc) for life before ability to take on board long-term vision

Human Resource capacity constraints

Financial constraints

Lack of proper aid co-ordination mechanism for multi donors and funding agencies


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Roll-out of a phased MfDR framework in 5 areas of MfDR

Focus on good governance, macroeconomic stability, fiscal responsibility and civil service

rejuvenation to provide enabling environment MfDR framework implementation

Allocate and utilize donor funds responsibly for MfDR

Improve national aid co-ordination & monitoring mechanism

Garner further assistance of donor agencies through illustrating results achievement

through MfDR


Thank you for listening

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Documents

Linking Planning & Budgeting through MfDR MfDR Experience in Maldives