1. LINKING THE BUDGET TO THE NATIONAL DEVELOPMENT PLAN
MINISTRY OF FINANCE, PLANNING & ECONOMIC DEVELOPMENT
AND
NATIONAL PLANNING AUTHORITY

2. Presentation Outline Introduction Priorities for 2014/15
Linkage between NDP and the Budget
NDP II Process
Conclusion

3. Introduction Objectives of the Presentation
Guide Votes on alignment of their Budgets to the NDP priorities
To demonstrate the allocation of the Budget to the NDP priority areas thus far
To communicate the NDP II preparation process

4. Introduction
Government approved the comprehensive National Development Planning Framework (CNDPF) policy in 2007;
Provides a clear perspective vision and long-term plans to articulate the country’s strategic development objectives and priorities against which medium and short term plans are anchored.

5. Introduction Elements of the CNDPF
It is comprised of five principal elements
30 Year National Vision.
10 Year National Development Plan
5 Year National Development Plans
Sector Investment Plans
Local Government Development Plans (DDP & MDPs)
Annual Plans
Annual Budgets

6. Introduction Uganda Vision 2040
In April 2013 Government launched Uganda Vision 2040 whose aspirations are to transform Uganda from a predominantly low income country to upper middle income country within 30 years with per capita income of USD 9500.
Uganda Vision 2040 is to be achieved through implementation of the NDPs which are financed mainly through the National budget.

7. Introduction National Development Plan FY 2010/11-14/15
The NDP is the overarching Government plan which stipulates the medium term strategic direction, development priorities and implementation strategies;
The theme of the NDP is Growth, Employment and Socio-economic Transformation.
Sectors are responsible for developing policies and plans, which must be aligned with the NDP;
The LGDPs are majorly linked to the NDP through the SIPs

8. The Key NDP Priorities
Accelerating infrastructure development (energy, ICT, transport).
Increasing agricultural production and productivity
Improve on community’s social well-being and human development ( Education and Health).
Water for Production
Governance and accountability
Note: Other priorities may emerge in the course of implementation of the National Plan e.g. disasters;

9. Priority cont..... 1. Accelerating infrastructure development
LGs will focus on:
Increase investment in value addition;
Rehabilitation and routine maintenance of roads and bridges
Increasing Agric. Production & Productivity:
LGs should focus on the following;
Use of improved seeds, fertilisers and provision of extension services
Promotion of the 10 key commodities
Small scale and affordable technologies such as walking tractors
Agro zoning

10. Priority cont.....
3. Improve on community’s social well-being & Human Development
LGs should focus on;
Improving provision of social services delivery especially in education and health
4. Water for production
LG should focus on:
Rain water harvesting for production;
Small scale irrigation technology

11. Priority cont..... The rule of law and accountability
5. Governance & Accountability
LGs should focus on:
The rule of law and accountability
Monitoring and supervision
Effective and efficient use of limited resources
Effective implementation of Government programme

12. Why harmonise the Budget and the NDP
Priorities have to be financed;
Aligning planning and budgeting cycle of Government;
Rationalisation of budgeting and planning instruments;
Participation in planning and budgeting processes

13. Linkage between the NDP and the Budget
The budget is the main tool by which Government allocates resources to implement its plans and address emerging policy priorities;
The Budget Framework papers and MTEF translates policies into implementable plans;
The framework for linking policies and plans to the budget is as demonstrated below:

14. Linkage between the NDP and the Budget
Policy
Strategic
Operational
Sector
BFP
Ministerial Policy Statements
MTEF & NBFP
Annual Budget
NDP
Investment Plan
Plans
Overall

15. Linking Budget to NDP Cont......
1. Medium Term Exp. Framework (MTEF)
The MTEF is a framework linking policies and plans to the budget;
MTEF rationalizes plan with finances in an integrated manner;
Reduces the imbalance between what is affordable, available and expenditure requirement.

16. Linking Budget to NDP Cont......
2. Medium Fiscal Framework (MTFF)-Res.Env
Sets fiscal policy and macroeconomic targets;
It sets out the hard budget constraint;
3. The National Budget Framework Paper (BFP);
The Government Budget strategy document linking Government’s overall policies and the budget.
4. The Budget:
An estimate of Government revenue and expenditure prepared annually.

17. Challenges of Resource Allocation
Limited resource envelope vis-à-vis increasing demand for resources;
Financing productive sectors vs. other enabling sectors;
Poor prioritization of resource allocation at sector level;
Allocative inefficiency;

18. Mapping Budget to the NDP
The excel sheet below shows budget provision against the NDP projections (FY 2010/11-FY 2013/14):
Mapping National Budget - NDP.xlsx

19. THE NDP II PREPARATION PROCESS
The current NDP (NDP I) is coming to an end (June 2015)
NDP II will set the agenda for the next five years
NDP II must be in place by September 2014 to inform the budget process for 2015/16 and also other stakeholders plans like: CSOs, private sector and Development Partners

20. What is likely to inform NDP II
The Vision 2040:
Vision 2040 highlights the key opportunities and fundamentals for government Investments;
The Opportunities and fundamentals e.g. Tourism infrastructure and Minerals Infrastructure
NDPI Mid Term Review (MTR)
Emerging issues: poor implementation; weak alignment of NDP to budget; underfunding NDP core projects; inadequate human resources
On-going Regional and International discussions
EAC heads of state discussions, MDGs, etc

21. Approach to the production of NDPII
Alignment of implementation plans and Budgets with NDPII
Sector Investment Plans and Higher LG Development Plans
Budget
Other stakeholder plans (Development Partners, CSOs, Private sector)

22. NATIONAL DVELOPMENT PLANS (NDPs)
PLANNING FRAMEWORK
VISION 2040
NATIONAL DVELOPMENT PLANS (NDPs)
SECTOR Dev’t PLANS
SETOR Dev’t PLANS
SECTOR Dev’t PLANS
SECTOR Dev’t PLANS
DDPs/ MDPs

23. Clearly aligned objectives and indicator
Vision Priorities
NDP Objectives & Indicators
Sector Objectives & Indicators
DDP/MDP Objectives & Indicators

24. Approach cont…. Implementation Modalities
Improve capacity to implement(Human resource and institutional capacities)
Address challenges of Implementation (Procurement processes, resource mobilisation among others.)
A multi-sectoral core team has been constituted
National development issues paper has been developed
National consultations are planned

25. The NDP II proposals will cover:
Development of a detailed macro-economic strategy;
the SIP/SDPs and LGDPs reviewed and aligned to NDPII priorities;
Making sure cross cutting Issues are well addressed (e.g. population, social protection, human rights, gender, culture and national values, Environment etc.) ;
Instruments of monitoring and evaluation are appropriately developed;
Addressing issues of physical planning.

26. Timelines Tasks 2013 2014 2015 Preliminary Activities
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Preliminary Activities
Macro-economic strategy
Sector Development Plans
Local Government Development Plans
Cross cutting issues
Implementation, Monitoring and Evaluation
Spatial Reflection of NDP2
Drafting and Approval Process for NDPII
NDP2 Dissemination

27. Conclusion
National BFP represents the strategic link between Government’s overall policies (NDP) and the annual budget;
Resource allocation should be based on NDP priorities and on emerging challenges;
The budget for FY 2014/15 should be in line with above priorities.
Infrastructure development is expected to remain a key priority under NDP II;

28. THANK YOU FOR LISTENING