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LESOTHO APRM PROCESSLESOTHO APRM PROCESS

Technical National APRM Workshop on “Harmonizing the Lesotho APRM NPoA with the existing Development Strategies and the MTEF and Budget”

Max OchaiMASERU, LesothoFebruary 27, 2014

National Program of Action: Funding and Implementation

Presentation

Purpose:To share Ugandan experience in funding and implementation of APRM NPoA

To inform the Lesotho case

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The Word

Effective implementation of a SMART NPoA can improve state of governance and accelerate socio-economic development:

Apply same macro-fiscal framework to NSDP – inclusive of NPoA - and MTEF

Undertake MTEF process to implement NSDP

Execute a comprehensive budget

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Outline

IntroductionUganda: planning and budgeting processes

NPoA in PracticeUgandan

Key Challenges and LessonsEffort

Some RecommendationsLesotho

Conclusion4

1. Introduction

Dove-tail

Planning processEvaluation

Macro-economic analysis– Situation analysis

» Prioritization [...NDP confronts Budget...]

– Setting resource ceilings

Estimation of resource envelope

Public expenditure review

Budgeting processRationale for merger of Planning and Fiscal Authorities

1. Introduction Cont’d

Budgetannual plan

Statement of expenditure and its funding

according to IMF (2001) GFS Manual:Revenues (Tax, Non-tax and Grants)ExpenditureFinancing (Loans)

G = T + A + D

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2. Uganda: NPoA in Practice

Total cost estimated at US$ 4.9 billion, 2008/09 to 2010/11 Fiscal Years

NB: NPoA was NOT resource-constrained

2. …Practice Cont’d

Sources of FundsDomestic:

National Treasury

MDAs - own receipts

LGs - own collections

External:Development Partners

– Multi-lateral– Bilateral

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2. …Practice Cont’d

Uses of FundsBudgetary:

Subjected NPoA to national, sectoral and sub-national re-prioritization process

Provided for implementation of NPoA in National Budget, within MTEF

Extra-budgetary:Discretionary

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2. …Practice Cont’d

DisbursementsNational Budget:

Annual and Quarterly Workplans– Annual and Quarterly Requisitions

» Annual and Quarterly Progress Reports

Extra-budget:Annual and Quarterly Workplans

– Annual and Quarterly Requisitions» Annual and Quarterly Progress Reports

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2. …Practice Cont’d

ImplementationGovernment had primary responsibility

MDAs

LGs

AuxiliaryPrivate sector – in part, service delivery

Civil society – mainly advocacy

The media – principally watch-dog

2. …Practice Cont’d

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2. …Practice Cont’d

CapacityInstitutional:

Policies, laws, guidelines, organizations, etc.

Human:Technical officers and experts

Financial:Own and other funds

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2. …Practice Cont’d

Risks and MitigationPerceived Risks

Failure to mobilize adequate funds (Low)

Inability to build requisite capacity (Low) :– Implementation– M&E– Reporting

Mitigation MeasuresRe-prioritization of critical tasks

Issuance of performance contracts

3. Challenges and Lessons

Key ChallengesConstrained resource envelope

assumed full support of Development Partners; and

Low planning/implementation capacityprioritization, prioritization, prioritization

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3. … Lessons Cont’d

EffortTreasury Single Account system

Introduced in Government

MTEFMulti-sectoral, -institutional and -year

Capacity-building and -development

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3. … Lessons Cont’d

LessonsFunding:

Pooled all funds into a single account

Disbursed funds from the same account

Implementation:budget basics enhanced implementation of MTEF

Managed policy and planning at sector level

Adopted single budget agency, responsible for co-ordination of NDP, as well

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4. Some Recommendations

Lesotho NPoATotal cost estimated at US$ 200.1 million, over medium-term

Cost was NOT resource-constrained

4. … Recommendations Cont’d

To the Kingdom in the Sky:Adopt one comprehensive National Plan

Inclusive of APRM NPoA

Use one macro-fiscal framework to constrain both National Plan and MTEF

Open budgeting process to stakeholders

Apply MTEF process to cover all sectors

Execute one comprehensive budget

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5. Conclusion

NPoA NDPThematic Paper on Governance

NDP MTEFBudget Framework Papers

MTEF BudgetBudget Call Circulars

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5. Conclusion Cont’d

Effective implementation of a SMART NPoA can improve state of governance and accelerate socio-economic development in Lesotho:

Apply same macro-fiscal framework to NSDP – inclusive of NPoA - and MTEF

Undertake MTEF process to implement NSDP

Execute a comprehensive budget

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Kea leboha