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Key points:
- Different decisions are made at each stage of the budget process
- You should intervene before the decisions you want to change are being made, not after.
Budget Cycle
Budget formulation
Executive drafts budget
Budget enactment
Minister of Finance presents budget to parliament,
Budget Execution
Government agencies & departments implement
budget formulation
Medium Term Expenditure Framework (MTEF) 3 year rolling budget
budget enactment
Govt agencies & depts implement programmes and spend the funds
budget execution
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budget formulation
Medium Term Expenditure Framework (MTEF) 3 year rolling budget
budget enactment
Govt agencies & depts implement programmes and spend the funds
budget execution
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Medium Term Budget Policy Statement; Adjustments Estimate; Division of Revenue Bill - introduced into Parliament (Nov) Tabling of budget in Parliament Formulation overlaps with other stages, i.e. auditing of last years records & execution of current years budget
When and how would civil society best impact on the Formulation Stage?9
How much extra money will we collect in tax & donor funds for the next financial year?
How much extra money do we want to spend? How much money should we borrow? How should we divide additional money up between expenditure departments?
Treasury, Central Bank, Donors Treasury, Donors, Cabinet Treasury, Central Bank, Donors Treasury, Donors, Cabinet
How should we divide additional money up within expenditure departments (which programs)?
On what should we spend additional money within each programme?
Plenary work:
Not all people with mental health problems have access to community-based services . Make a list of all the possible budget formulation decisions that could cause this problem. Who makes each of the decisions that you listed above?
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budget formulation
Medium Term Expenditure Framework (MTEF) 3 year rolling budget
budget enactment
Govt agencies & depts implement programmes and spend the funds
budget execution
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budget formulation
Medium Term Expenditure Framework (MTEF) 3 year rolling budget
budget enactment
Govt agencies & depts implement programmes and spend the funds
budget execution
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budget formulation
Medium Term Expenditure Framework (MTEF) 3 year rolling budget
budget enactment
Govt agencies & depts implement programmes and spend the funds
budget execution
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Types of audit
Financial audits/ attestation audit Auditor attests to, or
verifies, accuracy and fairness of the presentation of financial statements Compliance audits Auditor checks if some conditions have been satisfied: expenditure authorised by competent authority? Expenditure authorised by the appropriation law and spent according to the law? Does expenditure conform to procedures of public finance and related laws? Performance audits assessing technical & managerial aspects of spending to measure levels of value-for-money in public spending (moving beyond accounting & finance), through three factors:
Economy: can program be run at less expense? Efficiency: can r/ships between inputs and outputs be improved? Effectiveness: Is the spending authority delivering its intended
Where and how would civil society best impact on the Auditing stage?
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Plenary exercise
Now that we have covered all the budget cycle phases, which stage of the budget process would you try to intervene in if you were advocating about the following & why?
- Poor quality medicines are procured with no efficacy on medical conditions for which they are dispensed - Auditor Generals report on poor financial management of the department of health - Money allocated to district hospitals wasnt spent during the financial year - There is fraud in every procurement process of the department of health - Underspending in the palliative care budget
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The intrigues and politics of the budget process The Actors: Donors, politicians, bureaucrats, civil society Source: IBP www.internationalbudget.org THE POWER-CARD GAME
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Treasury
Where do they have power? Fiscal policy, Expenditure envelopes, Arbitration, Virement, Rollovers, Financial management The Limits of their power Relationship with the Presidency/Prime Minister Technical capacity
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Politicians
Where do they have power? Executive decisions, Formulation of budget, Implementation of Budget The Limits of their power Policy goals public? Financial management legislation Relative power of Legislature and Treasury
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Legislatures
Where do they have power? Approval of budget, Implementation, Audit The Limits of their power Political system & party rules Amendment powers Role of committees in the budget process
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