Analytical Capabilities of a Functional PBO

Programme-Based Budgeting

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Introduction of Programme-Based Budgeting

A form of performance budgeting in which budget expenditure is planned

and managed by programme. The objectives of each budget programme
are clearly specified and formally approved by the government and the
legislature.

• Ensure accountability – governments need to assure taxpayers that

public resources are allocated, spent and managed efficiently.

• Improve resource allocation and management

• Ensure value for money and that public expenditure is effective.
• A closer alignment between socio-economic planning with annual
budgets and the integration of a culture of performance.

• Enhance efficiency in the delivery of public services. 2

PBB Footprint in Africa
Morocco Tunisia

Algeria Libya
Western Sahara Egypt

Mauritania Mali
Niger Eritrea
Chad Sudan
Gambia Burkina Faso Djibouti
Guinea Togo
Benin
Nigeria South Sudan
Sierra Leone Cote D’Ivoire Ethiopia
Ghana Central African Republic
Liberia
Cameroon
Somalia
Equatorial Guinea Uganda
Congo Kenya
Gabon Democratic Rwanda
São Tomé and Principe
Republic of Burundi
Congo Seychelles
Tanzania

- Functioning PBB system in place Comoros

Angola Malawi
Zambia
- Considerable progress towards PBB
Mozambique
Namibia
- Some progress towards PBB Botswana Madagascar
Mauritius

- PBB reforms begun Swaziland

Lesotho
- Committed to PBB reforms in future South Africa

- No PBB reforms yet

Source: 2012 CABRI Survey 3

Three Types of PBB Systems

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The Roll Out of a Complex Reform in Africa

Challenges in Implementation

• Reporting and evaluation challenges.

• Limited buy-in or resistance from critical stakeholders- MDAs,
Parliament.
• Technical challenges – costing of programmes, definition of clear
and measurable policy objectives, development indicators.
• Alignment of organisational structures to the PBB framework.
• In Ghana a study shows that "the reform failed to overcome
procedural inertia and the persistent culture of non-performance
and lack of accountability in the civil service".

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Implementation Landscape
• Adopt a new budget system law.
• Ownership of the PBB system by parliament.
• Ownership of the PBB system by the government.
• Comprehensive macro-fiscal framework with medium-term fiscal
targets and reliable projections.
• Annual budget that integrates current and investment spending…
• Enhance budget management responsibilities in spending ministries.
• Establish meaningful expenditure ceilings early in the annual budget
preparation process and assure their respect during budget execution.
• Ensure that expenditure controls are functioning well.
• Planning framework at both national and sector levels.
• Functional auditing of financial compliance 6
Lessons from Burkina Faso

• Strong internal initiative must be evident

• PBB reform also led by Parliament
• Parliamentary budget commission input in key reference documents
• Budget reform committee or specialised reform unit
• Establishment of broad representative and technically proficient
technical secretariat which provides support to ministries and
institutions in:
• preparing PBB by means of training awareness programmes and
breakdown of programmes into actions
• preparing annual programme performance projects
• preparing experimental programme based budgets

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Implications for Parliamentary Oversight

• Change in the level of authorisation - Parliament approves budget at

more aggregate level.
• Change in information content of the budget.
• Access to timely, accurate information on the budget.
• Extensive information on budgetary inputs, expected outputs and
outcomes.
• Change in discourse :
• What do we want to achieve?
• What will we do to achieve it?
• What will be the cost of our efforts?

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Programme-Based Budget of Kenya - 2018–2019

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Summary of Expenditure by Programme

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Programme-Based Budget of The Gambia – 2019
Ministry of Trade
[Link] Development
1.1 Trade Facilitation and Promotion
1.2 Support to Legal Metrology
1.3 Competition and Consumer Welfare
1.4 Industrial Development
1.5 Promoting Regional Integration
2. Industrial and Enterprise Management
2.1 Industrial Development
2.2 Investment, Enterprise and Export Development
2.3 National Quality Infrastructure Development
3. Employment Creation and Labour Administration
3.1 Support Employment Creation
3.2Strengthening Labour Administration System
4. Strategy, Policy and Management
4.1 General Administration
4.2 Planning and Provision of Statistics
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Thank you

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