BUDGET DEMYSTIFICATION PROJECT

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					BUDGET DEMYSTIFICATION
       PROJECT
  Promoting Peer-to-Peer Learning
  through South-South Cooperation
KEY PROJECT OBJECTIVES:
• Demystify National and Local Government
  Budgets through peer-to-peer learning by
  making them user-friendly 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,
         Background (Cont’d)

• Guide to foster understanding of the
  processes involved in the preparation and
  execution of the National and Local
  Governments’ Budgets
           The Work Plan
• Project Proposal – April 08 to September
  08 and contractual issues
• October 08 to February 09 (eclipse)
• March 09 – Manual Outline, VC 19th
• May 09 – June 09: Revised manual,
  Comments
• August 09: Final Budget Manual
                 WORK PLAN
• Task A: Develop Simplified Budget Formats and “how
  to” training manuals and user guides. Timeframe: March
  1st – March 31st

• Task B: Organize a web-based/online skills
  enhancement course



• Task C: Presentation of the project findings via VC
  Timeframe: 1st December 2009
           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
        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.
      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.
           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
          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
    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
                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
          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
   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