Home » Budget Preparation for 2010/2011- 2012/2013 Medium Term Expenditure Framework

Budget Preparation for 2010/2011- 2012/2013 Medium Term Expenditure Framework
Posted in Health Financing, Policy by Ruth Atieno on February 26th, 2010

Budget Sector Hearings for 2010/2011- 2012/2013 Medium Term Expenditure Framework (MTEF) have been taking place (17th February to 26th February 2010). The purpose of the Sector Hearings is to ensure transparent discussions of priorities of government for the next financial year with key stakeholders including development partners, civil society, private sector, research institutions among others. The Hearings for the Human Resource Sector, in which health belongs, has been confirmed for 26th February 2010 at 2.30pm to 4.15pm (download the detailed schedule- schedule setor hearings Feb 2010.pdf). The German Development Cooperation is a key development partner in the Kenyan health sector. German Development Cooperation (GDC)through GTZ and other partners is supporting the Kenyan Health Sector planning and budgeting. GDC support is based on the principles of Human Rights and Social Justice, including equitable access for all Kenyans, including the poor, to good quality health care services, participation of people in decision making processes regarding health care issues concerning them. GDC support promotes gender sensitive budgeting processes and removal of disparities including geographical, socio-economic and gender related.

To guide the preparation of MTEF for the period 2010/2011 – 2012/2013, in August 2009, the Ministry of Finance issued to all ministries, departments and government agencies a circular detailing the guidelines (download full Circular- Budget prep guidelines for budget 2010-11.pdf). The Circular directs that the preparation of the budget for the next MTEF period should be within the context of stimulating growth and creating jobs, reducing poverty and enhancing food security, and protecting the livelihoods of poor and most vulnerable of the society. The Sector Working Groups were therefore urged to ensure that they only consider proposals for funding that support the achievement of these objectives and priorities outlined in the Medium Term Strategy of Vision 2030.

The Circular lays emphasis on improving efficiency of government in delivery of services to the people. The Circular also directs that the Ministerial Public Expenditure Reviews that are undertaken annually to inform the budget process will now be undertaken after every three years, with a view to allow ample time for proper trend analysis and enforce consistency between the budget and subsequent years. This directive takes effect in the financial year 2009/2010 and hence the next Public Expenditure Reviews will be undertaken in 2012/2013 financial year. As a reform agenda in the Kenyan budget process, the Circular indicates that the government will continue to entrench programme/performance based budgeting in the budgeting process- this is expected to be fully operational in the financial year 2010/2011. This is aimed at guaranteeing efficiency and effectiveness in public spending. Additionally, the government will continue with its policy of rationalisation of expenditure with a view to funding only core services through elimination of duplication and inefficiencies. Cost effectiveness and sustainability of programmes and extent to which respective programmes address core poverty interventions are among the key considerations for resource allocation. The Circular requires that districts and other stakeholders be involved in the MTEF budget process- this would be facilitated through hearings.

The budget process was initiated in October 2009 with the formation of Sector Working Groups. The Sector Working Groups have prepared draft sector reports which give an overview of the sectors’ performance in the last years as well as medium term priorities and a financial plan for the MTEF period 2010/11 -2012/13. The Reports will be discussed in the Sector Hearings. After the hearings, the Sector Working Groups will finalise the reports and they will be the basis for the budget preparation. For the first time, Government will be required to present its programmes to Parliament as part of the Budget Policy Statement. Parliament will then discuss the programmes. This marks the beginning of Parliament involvement in the budget preparation process, a departure from the preceding years.

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