1. Policy, Budgeting and Oversight: The Role of the Legislature in Uganda Ishmael M Magona Ministry of Finance, Planning and Economic Development

2. Outline  Introduction  The Ugandan Legislature  The Legislature & the Policy making processes  Involvement of the legislature in the budget process  Capacity Enhancement  Parliament´s effectiveness  Conclusion

3. Introduction  Progress has been made in enhancing the credibility of the policy and budgeting processes  This has been through increased involvement of the key stakeholders  Some challenges still exist.

4. The Ugandan Legislature  Mandate and functions derived from the 1995 Constitution.  Parliament plays an oversight role thru: Passing laws for good governance Passing laws for good governance Debating and enacting the budget Debating and enacting the budget Monitoring implementation of policy & programmes Monitoring implementation of policy & programmes Ensuring increased transparency and Accountability Ensuring increased transparency and Accountability Representing the interests of individual constituencies Representing the interests of individual constituencies

5. …The Ugandan Legislature  Presently has over 300 members 214 constituency representatives 214 constituency representatives 56 District Women Representatives 56 District Women Representatives 10 Army Representatives10 Ex-officio members 10 Army Representatives10 Ex-officio members 5 Representatives @ for Youth, PWDs & Workers 5 Representatives @ for Youth, PWDs & Workers  Under the Movement governance MPs are elected on the basis of “Individual Merit”

6. The Legislature & Policy Making  The active involvement of Parliament dates from the early 90´s during PEAP formulation  Reasons: Need to ensure constituency interests are reflected in the national plans Need to ensure constituency interests are reflected in the national plans Creating awareness on the policies underpinning the budget Creating awareness on the policies underpinning the budget Making MPs part of the solution seeking group to policy implementation bottlenecks Making MPs part of the solution seeking group to policy implementation bottlenecks

7. The Legislature & the Budget Process  Prior to 2000 – Budget was being made by MFPED Implication: Budget was less credible Implication: Budget was less credible  Situation changed with the enactment of the Budget Act 2001  The Budget Act regulates the budgetary procedures for a systematic and efficient budget process

8. The Budget Process  The Budget Act 2001 has made the budget process more open, transparent and consultative involving all stakeholders  The Act sets the key dates for delivering key budget documents and how Parliament gets involved in the budget process

9. The Consultative Budget Process Parliament Cabinet Line Ministries/ Spending Agencies/ SWGs/Donors MFPED National Budget Workshop -Indicative Sector Ceilings -Budget & SWG Guidelines Preparation of Sector BFP and Revised MTEF Allocations within the Ceiling Cabinet Approval of BFP/MTEF Inter-ministerial Consultations Compilation of National BFP And Updated MTEF Submission of Indicative Plan/MTEF Finalisation of Budget Allocations/MTEF Final Budget Approval Budget Speech Preparation of Detailed Budget Estimates Oct - DecJan - Mar Apr - June PER April 1June 15 May 15

10. Capacity Enhancement  The Budget Act requires MFPED and the Parliament to do things differently in order to improve efficiency and effectiveness  Within MFPED the following have been introduced: Integrated Financial Management System Integrated Financial Management System Output Oriented Budgeting Output Oriented Budgeting LTEF for enhanced revenue/exp. forecast LTEF for enhanced revenue/exp. forecast Various budgeting documents Various budgeting documents

11. …Capacity Enhancement  Parliamentary Budget Committee and Budget Office The Budget Committee is standing Committee of Parliament The Budget Committee is standing Committee of Parliament The Committee scrutinises the preliminary estimates and the macroeconomic plan The Committee scrutinises the preliminary estimates and the macroeconomic plan It reviews the national budget and compiles amendments which are referred to various Committees It reviews the national budget and compiles amendments which are referred to various Committees

12. …Capacity Enhancement  The Budget Office: Provides budget related information to all Committees Provides budget related information to all Committees Submits reports on economic forecast, budget projections and options for reducing the budget deficit Submits reports on economic forecast, budget projections and options for reducing the budget deficit Identifies and recommends bills that provide for an increase/decrease in revenue/budget Identifies and recommends bills that provide for an increase/decrease in revenue/budget Prepares analytical studies on specific subjects Prepares analytical studies on specific subjects Gives general advice on the budget and national economy Gives general advice on the budget and national economy

13. …Capacity Enhancement  Legislative Support Services – to help MPs in writing and tracking legislation  The Committee system has been particularly useful in the budgeting process and to monitor spending  Increased interaction with the CSOs to support it in planning, budgeting and monitoring to ensure improved service delivery.

14. Parliament´s Effectiveness  Parliament´s increased involvement in planning and Budgeting has yielded positive outcomes: Increased transparency and accountability to enhance reach of activities Increased transparency and accountability to enhance reach of activities Rules and procedures to curb excessive borrowing have been introduced Rules and procedures to curb excessive borrowing have been introduced Supplementary expenditure is incurred after Parliamentary approval Supplementary expenditure is incurred after Parliamentary approval

15. Conclusion  Some challenges still exist e.g. due to political pressures funds are shifted to purposes other than those approved e.g. due to political pressures funds are shifted to purposes other than those approved Oversight demands due to overlap of cycles – budget, monitoring and audit. Oversight demands due to overlap of cycles – budget, monitoring and audit.  These make Parliament less efficient in scrutizing budgetary allocations

16. …Conclusion  The challenges can be overcome with strengthened capacity in: Increased research in budget issues Increased research in budget issues Increased access to comprehensive, accurate and timely information on different policy and budget issues and audits Increased access to comprehensive, accurate and timely information on different policy and budget issues and audits The system of specialised committees The system of specialised committees  Need to reducing donor dependency in order to enhance independent decision making

17. Conclusion Thank You For Your Attention.