Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
Budget Transparency in the Kingdom of Lesotho
1. Budget Transparency in the Kingdom of Lesotho: The Roles of PFM Reform and Public Outreach ICGFM 25th Annual International Conference Miami, Florida USA May 15-20, 2011
41. Funded by several donors, including the European Union (EU), UK Department for International Development (DFID), Irish Aid, World Bank, and African Development Bank
42. Seven Areas of Focus:Strengthened macroeconomic analysis and forecasting linked to fiscal policy, budget performance and monitoring Integrated planning and budgeting systems Modern procurement systems 9
43.
44. Seven Areas of Focus:Modern integrated accounting, revenue and expenditure management systems Strong independent oversight bodies and mechanisms Information to facilitate effective Cabinet participation in the budget process Enhanced capacity within Ministry of Finance and Development Planning (MFDP) to support and sustain reform More on those areas related to budget processes and systems… 10
81. Ideally, ministries whose functions are more relevant to government priorities receive a larger share of the total funding
82. Current format includes: ministry objectives linked to national planning documents; service delivery issues; key performance indicators; and costing of new funding/savings proposals17
87. Various approaches attempted, with some being too complex and creating confusion; activity-based budgeting as a method for producing programme-based estimates was particularly problematic
153. New Chart of Accounts to exploit reporting capabilities of the IFMIS and bring reporting into compliance with international standards
154. New Chart of Accounts also provides more flexibility for the integration of recurrent and capital budgets and the entry of budgets on both a cost centre and programme basis30
172. A transparent and evidence-based bidding process for budget resources by ministries through the use of Budget Framework Papers; also, more information available to Cabinet for decision making
173. Integration of recurrent and capital budgets reflect full cost of projects and, ultimately, the delivery of programme outputs34
174.
175. Greater transparency in funding of government priorities through Programme Budgeting implementation:
176. Budgets traditionally prepared using cost centre structure, which generally represents a ministry’s administrative structure
177. The cost centre structure does not always align well with ministry objectives/outputs; therefore, difficult to align with overall government priorities
178. The new programme structure being designed based on government priorities, which will present a clearer picture of the resources allocated to support these priorities 35
179.
180. Budget Book contained only budget data by economic classification, no other supporting information
181. Budget Book currently being piloted has ministry descriptions and performance information:
195. Major public outreach event occurs every year as the Honourable Minister of Finance and Development Planning tables the Budget Estimates before Parliament for approval. During this time, the Budget Estimates are broadly distributed to the citizens:
197. Budget Teams from MFDP are assigned to travel to each of the Districts of Lesotho to conduct public forums with stakeholders in the Districts:39
198.
199. These meetings are attended by people from different sectors, including farmers, business community, Non-Governmental Organizations (NGOs), as well as public servants from different government departments in the Districts
200. In these forums, the stakeholders have opportunities to inquire about the current Budget Estimates and to learn about progress made from the funding of projects/ initiatives under previous budgets
201. The stakeholders are also given an opportunity to provide their own input, including the identification of priority requirements and recommendations for future year budgets40
202.
203. Budget Teams then report back to the Honourable Minister on the stakeholder input
204. These meetings are very effective because they aid in identifying public priority areas for resource allocation
205. The following pictures were taken by the Budget Teams to help justify the priority requirements and recommendations of the stakeholders, as well as to document progress on previously funded projects/ initiatives:41
208. 44 Final Outcome – Strategic Allocation of Resources Based on National Priorities:
209. 45 Public Priority Area – School Construction: Supports Lesotho’s Primary Education Priorities for 2011/12, which include increasing access, efficiency, and equity of education through construction of primary school classrooms and toilet blocks in the remote areas of Lesotho
226. Initiatives should be designed such that they avoid unnecessary complexity and compliment existing institutional and human and physical resource capacities in the ministries
227. Initiatives must be properly sequenced, and donors should ensure that support for initiatives is well coordinated with other contributing donor partners50
228.
229. Financial and payroll system functionality must be considered well in advance of implementing any reforms that are dependent upon these systems
230. New systems may be implemented, but, if staff are not adequately trained, they many undermine the effectiveness and sustainability of the systems 51
231.
232. Exposure to budget concepts and basic knowledge of the budget process can enhance citizens’ ability to effectively monitor government performance and accountability of taxpayer money
233. Government ownership of PFM reforms is required for long-term sustainability, with Ministries of Finance leading the initiatives, carefully guiding the design and implementation, and ensuring sufficient capacity to fully support the line ministries52