Action plan in place to strengthen accountability of Nat’l Budgets

Action plan in place to strengthen accountability of Nat’l Budgets – Finance Minister

Jul 13, 2016 News

Finance Minister, Winston Jordan

In an effort to promote and ensure accountability when it comes to the National Budgets, a Budget Transparency Action Plan has been put in place.
This is according to Finance Minister, Winston Jordan.
The action plan seeks to strengthen more than ten areas, which include public procurement, consultations on the budget and training of budget staff.
High up on the action plan is to ensure that there are consultations with key stakeholders on proposals to be included in the National Budget.
Jordan said these stakeholders would include the political Opposition, Private Sector Commission, Trades Union Congress, and relevant civil society organizations.
The Finance Minister said that this is being done to promote a participatory approach in budget preparation; to secure ownership of the outcome from key stakeholders; and to ensure greater transparency in the crafting of the National Budget.
He recalled that prior to 2015; there was little or no consultation with the political Opposition. He said that this resulted in three consecutive years of stalemate, “budget cuts”, unauthorized expenditure, and judicial intervention.
In the preparation of the 2015 Budget, Jordan said that attempts were made to consult with the political Opposition, while with respect to the private sector and other stakeholders, there were detailed consultations. The Minister of Finance nevertheless indicated a desire for ongoing dialogue in the future, instead of a once-a-year consultation.
With the action plan serving as a guide, Jordan said that he and his team will strive to release the outcome of budget consultations to the public via press briefings and related press statements and on the Ministry of Finance’s website, prior to the presentation of budgets to the National Assembly.
Furthermore, the action plan also seeks to incorporate a strengthened programme-budgeting framework in the National Budget. Jordan explained that this will provide for greater accountability for outputs, outcomes and impacts.
He noted that despite the efforts made to embed programme budgeting as evidenced by the compilation of Volumes One and Two of the Estimates to the National Assembly, statements of impact and indicators of achievement are not specific and quantifiable to facilitate ex-post evaluation.
Jordan said that he is confident that the action plan in this regard will strengthen the programme of the budgeting system and utilize performance reports within an enhanced Monitoring and Evaluation environment; including measurable indicators that are quantifiable and specific.
The Finance Minister said that effective from the fiscal year 2018 – with respect to all Ministries, Departments and Regions – the National Budget will provide specific details regarding the quantification of outputs, outcome, impacts and indicators of achievement.
The Budget Transparency Action Plan also takes into account, the need to provide specialized training for key staff of budget agencies. The Finance Minister said that this will enable staff to become more proficient in preparing programme budgets.
He noted that over the years, limited training has been provided to budget agency staff on programme budgeting. As such, he asserted that trained staff will facilitate the preparation of programme budgets and budget agency performance reports.
Effective from this year, Jordan said that all budget agencies will use updated Programme Budgeting Manual. He said that by January 2017, 80 percent of key staff from the Ministry of Finance and budget agencies will be trained.
The Minister also stated that the action plan will serve to ensure that the budget is approved before the start of the fiscal year, and information on it will be disseminated as widely as possible via the media and on Government websites.
A comprehensive procurement plan by budget agencies, in support of the National Budget, is also addressed by the action plan.
Jordan said that this initiative was incorporated into the programme to ensure that each budget agency plans its procurement activities well in advance and executes them in accordance with an approved plan.
With approximately 70 percent of the National Budget devoted to public procurement, the Finance Minister emphasized that there is need for a more effective system of procurement management.
With procurement plans in place, Jordan said that suppliers of goods and services, and responsible for the execution of works, will be in a better position to plan the offer of their services to the Government. In this way, the economist insists that better quality of goods/services and works will be offered.
He noted that preparation and publication of a comprehensive procurement plan for the Government by the Budget Agency will be on the Government’s website with effect from 2017.
The Finance Minister said that he also looks forward to the implementation of mechanisms for the Extractive Industries Transparency Initiative (EITI). This is also provided for in the Budget Transparency Action Plan. He said that this is necessary to ensure compliance with international standards.
He noted that no mechanism is in place to provide open and accountable management of natural resources, especially as regards public reporting of revenue derived from extractive industries.
Jordan reminded that in 2011, the Ministry of Natural Resources and the Environment held discussions with the Government of Norway in connection with the Initiative.
EITI is a global standard to promote open and accountable management of natural resources. It seeks to strengthen government and company systems, inform public debate, and enhance trust. In each implementing country it is supported by a coalition of governments, companies and civil society working together.
The Ministry of Natural Resources and the Environment is already taking steps to advance the application process of being part of the EITI. The deadline is in December.