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Programme Based Budgeting

The Ministry of Finance introduced Programme Based Budgeting (PBB) in 2010 on pilot basis involving 2 MDAs (Ministries, Departments and Agencies) and continued with 7 MDAs. The new budgeting approach was subsequently rolled out to all MDAs with critical mass of staff of MDAs trained in the preparation and management of PBB under the GIFMIS project (2010 – 2014) and had the first Appropriation Act passed in PBB format in 2014. MDAs have since then been preparing and implementing PBB.

Essential to these include the simplification of the Budget process and also making MDAs adopting more strategic approach in the management of their budget. Programme Based Budgeting approach also emphasized a direct link between planned expenditure to clearly determined results to achieve improved service delivery for the MDAs.

Finally, PBB provides the purpose of the budget within the Medium Term Expenditure Framework (MTEF) to measure budget performance to achieve the purpose for which the budget is been implemented.

In addition, the Ministry under the GIFMIS project introduced in 2015 a new Budget Preparation and Management System (Oracle Hyperion) to replace the Activate software which hitherto was used in the preparation of MDAs Budget. Financial information contained in the Budget Estimates are thus generated from the Budget Module. The new Budget Module which integrate with the Oracle Financials (GIFMIS) has helped to improve the quality of budget information as well as reduced significantly the time for budget preparation and implementation.

MDAs have received training in Programme Based Budgeting as well as the use of the new software and continue to receive refresher training yearly to deepen their understanding and knowledge of this new Budgeting approach and bring to their attention any emerging issues including enhancement done on the system. The trainings are also targeted at new staffs of MDAs or staffs assigned with the responsibility of budget preparation.