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Many, if not most policy and law makers, are finding it hard to comprehend government’s approach in implementing the Budget.
The population is not any better.
A mini-survey by Monitor in the five divisions of Kampala City, tells of the lack of clarity on what budget government is implementing.
In Kampala Central, at least one out of 10 of those surveyed have a vague idea while in Kawempe, Lubaga, Makindye and Nakawa, the understanding is completely blurred.
Never mind that the next financial year will be the third programme-based budget yet the lack of public understanding tells of a gapping knowledge gap that has not been helped much.
After years of preparations, which included benchmarking trips to countries such as Australia, New Zealand, Singapore, and South Africa, the Finance Ministry phased out the output-based budgeting system also known as sectoral budgeting
Government subsequently rolled out the programme-based budgeting, which links allocation to an earmarked function or area, in alignment with the National Development Plan.
Unlike before, where allocations were specific to output such as the number of hospitals constructed, vehicles purchased, or kilometres of roadway, now bases its allocations on transformation with the long term of achieving modernization and prosperity.
For instance, government would focus on how many seedlings had been given out through Naads during a particular financial year instead of the quality and quantity of produce.
Therefore, the Finance Ministry saw it fit to transition as a way of strengthening the link between strategic objectives, budget allocations, and service-delivery outcomes.
However, Patrick Ocailap, the deputy secretary to Treasury, says the budget is still being appropriated in votes only that for the last two financial years, it has been arranged and monitored under the programme-based approached.
“It might still be in the early stages of implementation, but this is a wonderful approach that allows us to get real value,” he says.
However, whereas government remains bullish on the potential of the approach, experts and economic analysts, believe more needs to be done.
“If well-implemented, this approach can bear some fruits. But I am afraid there is more work that needs to be put in before we can even begin imagining whether it will succeed or not,” Julius Mukunda, the Civil Society Budget Advocacy Group executive director, says.
The programmed-based approach seeks to consolidate rather than working in isolation as was the case before.
However, Mukunda says, many if not all ministries, departments and agencies are still locked in the output-based budgeting approach with some showing little interest in transitioning.
“We don’t seem to have prepared for the transition. The mind set of the [some] technocrats is still [locked] to the previous approach,” he says.
“Programme-based budgeting complements sectors by bringing them together to tap into synergies for better development results. However, there have been many challenges in the implementation … including public sector inertia, says Corti Paul Lakuma, a research fellow at the Economic Policy Research Centre
“Programme-based budgeting was introduced to dismantle silos that had dominated sectoral-based budgeting. Under the programme sectors are pooled and plan collectively to deliver set targets. There are still challenges but government is on the right track, says Madina Guloba research fellow at the Economic Policy Research Centre
The current approach is yet to be aligned with activities needed to support each other. There is still a mismatch between production, processing and marketing. This has been worsened by continued fights over allocations to different votes as it used to be, John Kakungulu Walugembe, Federation of Small and Medium-sized Enterprises executive director
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