1. BUDGET DEMYSTIFICATION PROJECT Promoting Peer­to­Peer Learning through South­South Cooperation

2. KEY PROJECT OBJECTIVES: Demystify National and Local Government Budgets through peer-to-peer learning by making them user­friendly and accessible to practitioners. Empower stakeholders in partner institutions with budget comprehension and analysis skills Strengthen budget literacy, transparency and citizen’s voice in public expenditure management,

3. Background (Cont’d) Guide to foster understanding of the processes involved in the preparation and execution of the National and Local Governments’ Budgets

4. The Work Plan Project Proposal – April 08 to September 08 and contractual issues October 08 to February 09 (eclipse) March 09 – Manual Outline, VC 19 th May 09 – June 09: Revised manual, Comments August 09: Final Budget Manual

5. WORK PLAN Task A: Develop Simplified Budget Formats and “how to” training manuals and user guides. Timeframe: March 1 st – March 31 st Task B: Organize a web-based/online skills enhancement course Task C: Presentation of the project findings via VC Timeframe: 1 st December 2009

6. PROJECT DESIGN: Key Players: Felix Kadewere, NLGFC (Malawi); Richard Rustayisire, RALGA – Rwanda; Omar Jobe, Pro-PAG (The Gambia) Project Start Date: March, 2008 Participating Countries: Initially included Zambia, Madagascar, Uganda, Zimbabwe in addition to key player

7. PROJECT DESIGN: Integrating Demand and Supply Perspectives: Participants in this working group indicated what their institutions could offer on PB or what they would like to learn about PB The design focused on both National & LGA budgets; on both the Revenue & Expenditure sides of budgeting; looked at CSO entry points into the budget cycle & related accountability mechanisms etc.

8. EXPECTED OUTCOMES The knowledge of peer institutions greatly enhanced in Public Finance Management and the budget is made accessible and user-friendly; Stakeholders literate in budget analysis and can do basic and advanced calculations on the national budget to meaningfully contribute in the LG budget processes Upward and downward accountability of LGA in relation to budgets through budget tracking greatly enhanced.

9. MAIN FINDINGS The coding of National budgets differ from country to country Stakeholders in the budget process should be conversant with the notion of share, nominal and real growth rates These simple budget analysis tools are applicable to LG budgets, National Budgets, Sector Budgets etc

10. MAIN FINDINGS Understanding the revenue side of budgets is as critical as understanding the expenditure side There are linkages between national development policies and local and national budgets Understanding the linkages between budget inputs, outputs, outcomes and impact is critical to PB Processes

11. MAIN LESSONS LEARNT Governments may emphasize nominal growth rates, but CSOs should consider real growth rates that take on board inflation instead  LG Budget Manual should be translated or demystified for ease of comprehension by the communities.  A Public Guide to the Budget and PB should be prepared in the national language for the interest of the communities

12. CONT’D  Effective Communication through all the possible means is required.  PB has taken many forms in all the 3 country case studies undertaken even though the underlying principles are the same

13. What ought to be improved  Both Activity and Financial Reporting should reflect the community’s contribution. Presently, the financial reports do not show the role of the citizens in monetary terms.  Giving feedback to citizens by the elected leaders should be enhanced  Advocacy for the respect of the PB principles especially the principle of Inclusion and Participation should be done at all administrative levels.  The need for PB should be propagated at both Central Government & Local Government Authority levels for sustainability

14. How to improve and sustain South-South Initiative  Peer to peer learning mechanisms  Study tours/exchange visits among peers  Working closely with Line Ministries and LG Associations to continuously analyze and track budgets.  Forums of Local Finance Managers Network can be created to stimulate conversations & information sharing on the importance of public finance management  The Initiative should launch and sustain monthly ALGAF like sessions to allow practitioners and LGs learn from the experiences of peers