Anda di halaman 1dari 10

Local government planning and

budgeting process

A P R E S E N TATI O N B Y Z E B I I H A W . A B B A S
AT THE AFRICAN CENTRE FOR MEDIA
EXCELLENCE
5H MARCH 2014.

Framework for Local Government Budgeting


Legal mandate (Constitution, Local Government Act,

LG Finance and Accounting Regulations)


Fiscal policies which provide strategies such as
Universal Primary and Secondary Education
Participatory planning and Budgeting
Address priority program areas such Education,
Health, Water, Roads, Production and FAL
Always National Budgets are Balanced. That is to
say: Revenue >=Expenditures.

Framework for Local Government Budgeting


Linkage of Development plan to the annual budget.
Follows the National Chart of Accounts and LG

Financial and Accounting Regulations


Based on Output Budgeting Tool (OBT)
Consistency with the National Development Plan
(NDP)
Policy initiated by political and appointed leaders
Implementation done by technical personnel
All stakeholders have responsibility over budgets.

Overview of the Planning/ Budgeting Process


The Planning/Budgeting process is a cycle that runs

through out the whole Financial Year in a


participatory manner.
Begins with a review and update of the Mid-Term
Expenditure Framework (MTEF) and the country
portfolio performance review in July/August every
year
Followed by the first regional Budget Consultative
workshops between Oct Nov every year

Overview of the Planning/ Budgeting Process


Then Preparation of the Budget Framework Paper (BFP)

by LGs, Ministries and Agencies


Then preparation of National BFP and approval by the
Cabinet.
The Final National BFP is submitted to parliament. Then
after background to the budget and estimates developed.
At the LG level the Budget desk in consultation with the
DEC (District Executive Committee) prepares draft
budget of revenue and expenditure.
There after a budget is presented to council by the
political head (Chairperson LC5, LC3)

Sn

Planning Activity

Current
Practice

Proposed
New
Deadline

Respon
sibility

Submission of Q4 Performance Report


by LGs to MOFPED and

End of
July

End of
July

LGs

conduct Situation needs Assessment


and data collection

August/
Sept

August/
Sept

LGs

Consultations with Local Governments

Early
By 15th
November October

MOFPE
D

Issuance of Planning and Budgeting


Guidelines including IPFs (Indicative
Planning Figures) to LGs

Early
By 15th
November October

MOFPE
D

Budget Desk prepares the LG Budget


Call Circular and Circulates to HODs
and LLGs and Holding of the Budget
Conference at the LLGs and then at
HLGs

Early
By 17th
November October

LGs

Depts start preparing inputs to LG


BFP

Mid
By 21st
November October

LG

Sn

Planning Activity

Current
Practice

Proposed
New
Deadline

Responsi
bility

BUDGETING
PROCESS
Identification of investments
Late CALENDAR.
By 21
LGs
st

priorities and Preparation of Draft


DDPs

November

October

Discussion of draft LG BFP and


District Development Plan (DDPs)
by the standing Committees

Early
December

25th October

LGs

Review of the Draft BFP and DDP


by the TPC (Technical Planning
Committee)

Early
December

End of
October

LGs

10

Review of the draft BFP and DDP


by the DEC

Early
December

End of
October

LGs

11

Holding of the National Budget


Conference

Early
February

Early
November

MOFPED

S
n

Planning Activity

Current
Practice

Proposed
New
Deadline

Responsibili
ty

12 Submission of the LG Budget


Framework Papers to
MOFPED

By 15th
By 15th
February Novembe
r

LG

13

Discussion of the Draft 5 year


Development Plan or Annual
Workplans

By 30th
February

By 30th
November

LG

14

Issue of the Second Budget Call


Circular

By 5th
April

By 15th
December

MOFPED

15

Consolidation and Preparation of


LG 5-Year Draft Plan including
LLGs below the budget line
projects

15th April

By 30th
December

LG

By 30th
April

By 15th
February

LG

16 Presentation and approval of


the DDP /Annual Workplan
by the District Council

S
n

Planning Activity

Current
Practice

Proposed Responsibil
New
ity
Deadline

17

Issue of third Budget Call


Circular

May

20th
February

LGs

18 Preparation of Draft LG Budget


May
Estimates and Annual Workplans

By the end
of
Februaly

LGs

19 Laying of the Budget before


the District Council

By 15th
March

LGs

20 Submission of draft performance By 15th


Contract Form B to the MOFPED July

By the end
of March

LGs

21

Discussion of the draft estimates


by the standing Committees

July/
August

April/May

LGs

2
2

Consideration and approval


of the budget by the Council

By end
of
August

By 31st
May

LGs

By 31st
July

5th July

LGs

23 Repayment of unspent funds to


the consolidated fund

By 30th
June

The government financial disbursements.


The financial year starts from July 1 ST and ends on 30TH

june. It is divided into 4 quarters against which funds are


transferred from the centre to the districts and then to subcounties for projects implementation.
The new Finance and Accounting Bill 2012 which is before

parliament proposes new planning and budgeting schedules


as indicated above.
The National and LGs are implementing the Five Year
Development Plan running from 2010/11 2014/15 and
midterm review conducted mid way. Ie the plans are fixed not
being rolled every year.
The next Plan will run from 2015/16 2019/20