Transcript PBO Needs - Uganda - e-PBO

The Data needs of
The Parliamentary Budget Office
Opportunities and Challenges
(The Uganda Case)
The Association of Budget Offices Conference
Montreal, Canada 17th -19th June 2013
Presented by
Wanyaka Samuel H.
Director – Parliamentary Budget Office
June 2013
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Introduction
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The Presentation is to:
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Highlight the reforms in Uganda’s Budget Process;
Inform the participants about the types of analyses
carried out the Uganda PBO.
Indicate the data needs of the Uganda Parliamentary
Budget Office.
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Outline the basic sources of data for the PBO.
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To highlight some challenges for obtaining data.
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Efforts to overcome the challenges.
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Conclusion.
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Laws Regulating the Budget Process
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The Budget Process in Uganda is regulated by a
legal framework that includes the following
among others:Constitution,
Public Finance and Accountability Act 2003,
Budget Act 2001 (copy available) and
Other laws and regulations which provide
mandates for economic activities
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such as the Local Government Act e.t.c and so on.
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The Budget Act (1)
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Arose out of a private members bill and found
popular support in Parliament;
This law was aimed at making the Budget process
more transparent, participatory and all inclusive;
It mandates early and continuous participation of
parliament in the entire budgetary cycle and;
Provides opportunities for all stakeholders to
actively participate in the budget process.
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The Budget Act (2)
The Act establishes among others;
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A Budget Committee of Parliament, which
comprises all chairpersons of other Parliamentary
Committees as ex-officio members whose role and
functions include budget scrutiny and oversight.
The Parliamentary Budget Office, whose role and
functions are a subject to be discussed in this
paper.
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Functions of the Budget Committee
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Focusing on the preliminary estimates and the
macroeconomic plan and programs and
submitting the recommendations to speaker.
Considering the National Budget and compiling
amendments and referring them to the relevant
Committees.
Carrying on such other functions relating to the
Budget as may be assigned to it by Parliament
under this Act or other laws.
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The Parliamentary Budget Office (PBO)
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It is established by the Budget Act as
technical department for providing
Parliament and its Committees with,
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Objective
Timely and
Independent economic and financial analysis
of the economy and the national budget in
order to advise parliament and support its
budget oversight roles.
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Specific Functions of PBO (1)
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Providing an up-to-date budget-related information
to all Committees in relation to their jurisdiction
Submitting reports on, but not limited to,
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economic forecasts,
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budget projections and
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options for reducing the budget deficit;
Identifying and recommending on Bills that provide
an increase or decrease in revenue and the Budget;
Preparing analytical studies of specific subjects
such as financial risks posed by Government
sponsored enterprises and financial policy; and
Giving technical advice to Parliament and
Committees on the economy and the budget.
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Structure of PBO
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The functions of Budget Office fall under two
divisions namely
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Macroeconomics and Sectoral Analysis
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Fiscal Analysis and;
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A Financial Programming Section
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Staffing of PBO
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The Parliamentary Budget Office is staffed with
professional staff as stated by Section 20 of the
Budget Act.
Indeed, while PBO’s activities are spelt out in the
Budget Act, Parliament as a whole and its Committees
make requests for advice or analysis on any issues
related to the budget and economic performance.
This makes the PBO the prime source of Budgetary
and Economic information for Parliament and its
Committees.
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Analysis Carried out by PBO
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Budget Analysis broadly refers to
 examines the extent to which the revenue
and expenditure targets meet the set
objectives and levels of budget deficits
that results
Economic Analysis:- Dealing mainly with
the performance of the Economy.
 Eg. Inflation, Employment, GDP growth,
BOP, Interest rates, exchange rates,
Money demand and Supply.
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Analysis of the Resources
(Revenue) Side
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The Budget Office assists members of parliament to
analyse the resource side of the budget, which is
governed by the main objective of mobilizing funds for
meeting public expenditure.
These resources measures include,
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domestic resources from taxation revenue (comprising
income tax, Value Added tax (VAT),
International trade taxes,
local excise taxes),
non-tax revenue and
local borrowing from both bank and non bank sources.
There are also External Resources from Loans and Grants.
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Objectives of taxation
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Apart from resource mobilization,
taxation may have other objectives,
whose impact PBO advises Parliament
about, such as:
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Regulation to correct market imperfections,
Guiding and redirecting economic activities of
Production, and Investment and Consumption,
Industrial protection,
Public safety,
Strategic motive,
Equity in resource distribution and
Asserting Administrative Authority
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Analysis of Expenditure Side
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Public expenditure refers to the process
by which the government expends its
resources to achieve the various national
objectives.
Public expenditure is largely governed by
specific objectives such as
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The need to correct market failures
Provision of governance
Strategic considerations
Social welfare/wellbeing
Strategic interventions etc.
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Budget Deficit
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A combination of revenue and expenditure
yields an important variable known as the
budget deficit.
The budget deficit occurs when domestic
resources cannot fully fund the desired
expenditure.
The deficit can be funded by local sources or
external sources.
Each method of funding the deficit has
implications on the macroeconomic
objectives.
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Macroeconomic objectives include:
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Low and stable inflation (the rate at which
prices rise affect the well-being of people
especially the fixed income earners and
disrupt planning both for government and
private individuals and entities.
Employment creation.
Low and stable interest rates to promote
investment.
Stable exchange rates to promote exports.
Reasonable level of foreign exchange
reserves for any eventual international
shocks etc..
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Data needs of PBO
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The main data needs of PBO include
 Data on Performance of the Budget Financing i.e
Resources projections, approved and outturns of:
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Data on Performance of the Budget Expenditure i.e
Expenditures projections, approved and outturns of:
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Tax, Non-tax, Loans, Grants, Arrears;
By Sector and Agency and Economic Activity
Data of expenditure in relation to planned objectives
and activities.
Data on releases of funds against budgetary allocations
to various spending units.
Data on resource outturns against the projections.
Data on physical outputs of various forms of public
expenditure through physical inspection and public
hearings by identifying potential for budgetary wastes
and leakages.
Data on the Performance of the Economy such as
Inflation, GDP sector performance, Monetary data,
financial data, external sector data.
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Sources of data for the PBO.
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Submissions of Government reports to Parliament;
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Uganda Revenue Authority;
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Uganda Bureau of Statistics;
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The Central Bank of Uganda;
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Public hearings of Committees;
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Field oversight visits by staff and Committees;
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Petitions and Memoranda to Parliament;
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Public Libraries;
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Internet resources.
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Challenges for obtaining data.
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Inadequate capacity and resources to obtain
primary data hence reliance on secondary
data;
Inadequate analytical capacity of staff;
Inadequate equipment for Analysis by staff;
Lack of protocols for online access to
Government databases;
Delay and reluctance of agencies in providing
data and information;
Un availability of data by agencies;
Large and widespread informal sector.
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Efforts to overcome the challenges.
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Training and equipping for staff of PBO;
Obtaining secondary data from relevant
departments;
Use of powers and privileges of Parliament laws
to obtain data;
Using assumptions to estimate where data is not
available;
Compelling user departments to compile relevant
data;
Encouraging formalization of the informal sector
(An area where we need support);
Creating a databank of Key economic and Social
Variables within PBO
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Conclusion
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The analysis and advice offered by Parliamentary Budget
Office (PBO) is objective and impartial.
The technical content of the advice is not influenced. Any
Committee Chairperson or Member of Parliament may put a
request for analysis or advice to the PBO.
PBO does not manage the budget of the Parliamentary
Commission, but advises Parliament on budgets of all
public agencies.
A number of challenges in its operation still exist but PBO
have served as a model.
Many Parliaments in Africa who have taken lessons to
learn from us make their own systems better.
The Public Finance Bill 2012 before Parliament seeks to
repeal the Budget Act, we need community support and
prayers.
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Thank you for your attention.
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