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Regional LG Budget Conference: Development Planning & Performance

This conference will discuss issues related to development planning and performance for local governments, including budget compliance, NDPII and LGDP midterm review, preparation of NPDIII, SDPs and LGDPs, review of LGDP guidelines, and population policy implications.

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Regional LG Budget Conference: Development Planning & Performance

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  1. REGIONAL LG BUDGET CONFERENCE FOR FY2018/19 Development Planning and Performance: Issues for LGs By The National Planning Authority August-Sept, 2018

  2. Lay Out of the presentation • Background • Certificate of compliance of the Annual Budget • NDPII and LGDP Midterm Review • Preparation of NPDIII, SDPs and LGDPs • Review of the LGDP guidelines • Population policy and its implication 7. Conclusion

  3. Background • The PFMA Section 13 (6) requires that the Annual Budget shall be consistent with the National Development Plan, the Charter of Fiscal Responsibility and the Budget Framework Paper • The PFMA Section 13 (7) requires that the Annual Budget shall be accompanied by a certificate of compliance of the Annual Budget of the previous financial year issued by the National Planning Authority • Under the Comprehensive National Development Planning Framework (CNDPF), the National Planning Authority (NPA) is required to guide the production of medium and long term development plans for the country.

  4. Certificate of compliance of AB Approach to LG CoC of the Annual Budget: Local Government level assessment is 3 stage process: LG planning instruments (10%); Budgeting Performance (20%); Annual Work Plan/ Budget Alignment (70%) At Planning instruments level, LGs are assessed upon whether they have a District Development Plan (DDP) /Municipality Strategic Plan that is aligned to NDPII. Budgeting instruments level: The extent to which central government transfers to local governments align to approved budgetary allocations. The AWPB performance level: assesses whether the AWP has prioritized outputs in line with NDPII priorities and targets.

  5. Certificate of compliance of AB (Performance Scores) Key Messages: • There was an improvement in performance at LG Level at 62.2% in FY2017/18 compared to 51.8% in FY2016/17, this was attributed to LGs having approved LG Development Plans and good budget release performance by the MoFPED. • Transfers to LGs remain inadequate to support effective delivery of decentralized functions and LED interventions. The transfers are at 12.1 percent of the total national budget, which remains way below the NDPII target of 30 percent • Alignment to the NDPII by a number of key LG departments is unsatisfactory which is likely to negatively affect attainment of local and national objectives and targets. These departments include: Production and Marketing, Health, Education, Water, Natural Resource and Community Based Services.

  6. Certificate of compliance of AB (Performance Scores) cont… • Despite prioritizing local revenue collection, locally raised revenue by LGs remains too low at an average of less than 5% of their total budgets. Local revenue and donor funding continue to be unreliable sources of revenue in LGs. • There is inadequate prioritization and allocations to physical and urban planning interventions by LGs which are critical for improved urbanization and desired transformation of the country’s urban centers yet urbanization is a key strategy for social economic transformation of the country. • LGs are not prioritizing skills development and this has serious implications on solving the unemployment problem in LGs. This is an area that needs to be taken seriously by all LGs.

  7. What is required of LGs for Budget Compliance 1. Ensure that the Budget Framework Paper is prepared to deliver the results specified in LGDPs, SDPs and NDPII. 2. Ensure budget implementation are effective and efficient in delivering the planned activities and services. 3. The results defined in the LGBFPs must be the same results that are delivered, monitored, and evaluated. 4. Submit soft copies of the following budget documents to NPA for assessment of compliant for the FY2018/19 Budget: • The Annual LG performance report for FY2017/18 • The Annual Workplan and Budget for FY2018/19 • The Budget Framework Papers for FY2019/20 • The Quarterly LG releases by quarter 3 for FY2018/19 • The IPFs for FY2019/20

  8. NDPII Mid-Term Review for Lessons Learning and Improvement • Mid-Term Review (MTR) of the NDPII and LGDPs is on-going • MTR is required for making actionable, realistic, results-oriented and concrete recommendations to refocus as well as make changes in implementation, if any, that are required to achieve the Plan targets over the remaining period and for addressing emerging issues • MTRs are required to inform the formulation of next LGDPs, SDPs and NDPIII (2020/21-20124/2025)

  9. Key Messages for MTR • MTR is NOT meant to  cause any revision/updating of  the existing LGDPs. • The newly created LGs which became operational effective July 2016 and July 2017 will rely on Annual Progress Reports and other studies to inform the next development Plan • All LGDP MTR Reports should be out by end of December 2018 and shared with the Central Government- NPA, MoLG, OPM, MoFPED

  10. Preparation of NPDIII, SDPs and LGDPs • Production of the 3rd 5-year Plan NDPIII (2020/21 – 2024/25) & the 1st 10-Year NDP (2020/21 – 2029/30) has started; This will be done concurrently with the 10-Year Human Resource Plan (HRP) & the 5-Year Human Resource Development plan (HRDP) • SDPs will be produced and launched by June 2020 • MDAs & LGs will prepare and submit issues papers for integration into NDPIII by May 2019 • MDAs & LGs Plans will be Completed within six months after NDP launch

  11. Preparation of NPDIII, SDPs and LGDPs The Approach for the next NDP/SDPs/LGDPs: In light of the lessons learned from implementation of NDPII, SDPs and LGDPs, the 1st 10-year, 5-Year NDP III, SDPs and LGDPs will: • Be drafted within the Framework of the CNDPF, HRDPF and Vision 2040 • Be aligned with regional & international development agenda i.e. the SDGs, Agenda 2063, EA Vision 2050 • Be program-based planning on the basis of development outcomes cutting across institutional mandates • Be Area-Based Commodity Value chains to address the development peculiarities of regions where poverty levels have either stagnated or increased

  12. Preparation of NPDIII, SDPs and LGDPs The Approach for the next NDP/SDPs/LGDPs cont…..: • Be the basis for formulation of the development budget hence the final draft to be ready by September 2019 to guide the Budget Strategy for FY 2020/21 National Budget. • Involve extensive involvement of key stakeholders, particularly the private sector ( as investors/employers) • Involve more deliberate targeting of HR/Skill development to support implementation of the plans, hence development of HRPs. • Involve integration of Demographic Dividend interventions in annual plans and budgets, NDPIII, 10 YR Plan, SDPs, SPs, & LGDPs

  13. Preparation of NDPIII, SDPs and LGDPs The Approach for the next NDP/SDPs/LGDPs cont…..: • NDPIII PIP/LG Project Investment Profile should intend to include projects at pre-feasibility stage of preparationfor implementation • Be spatially illustrated to ensure that interdependencies or gaps between programs are recognized and addressed early or in the process • Review the NDP/LGDP implementation mechanisms to ensure better and more effective coordination and sequencing of activities/projects and synergy between or across the entirety of government.

  14. Revision of Local Government Planning Guidelines • Consultations on the revision of the LG planning guidelines will be conducted in the current Financial Year. The 2014 Guidelines don’t take care of: PFMA, 2015; regional and international protocols and emerging issues such as refugee influx, among others • The finalization of the LGDP guidelines and issuance of the planning call circular will formalize the LGDP preparation processes.

  15. Population Policy and its Implication on LG Planning and Budgeting Framework Key messages • Integrating population dynamics into LGDPs is not matched with budgetary allocations for population intervention priorities • No funding specifically for implementation of population activities in the National (NPPAP) and (DPAPs)

  16. Population Policy and its Implication on LG Planning and Budgeting Framework cont…. Actions required of LGs • Integration of population issues in the LG Development Plans, Programmes, Projects and Activities at all levels • Allocation of funds in the LG Budget Framework Papers for implementation of population activities

  17. Conclusion • Submit soft copies of the mentioned budget documents to NPA for assessment of compliant for the FY2018/19 Budget to the NDPII • Submit soft and hard copy of the LGDP MTR Report to the Central Government by end of January 2019 • Develop schedule of activities for the development of LGDP in line with the NDPIII preparation dead line. The schedule should be shared with members of the D/MTPC and D/MEC for ownership • Allocate resources for population activities in line with the District Population Action Plan • Prepare the BFP in line with the LGDP and NDPII

  18. Thanks for Listening

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